VAT Refund for Business Visitors in UAE
The UAE Federal Tax Authority (FTA) lets business visitors claim VAT refunds on expenses in the UAE. This refund scheme helps foreign companies save money during their visits. Mubarak Al Ketbi (MAK) Auditing guides firms through this process with clear advice.
Who Can Use the VAT Refund Scheme for Business Visitors in UAE?
Foreign business visitors can claim a VAT refund if they meet these rules:
- The business must not have a place of establishment in the UAE or any GCC VAT state.
- The business must not be a taxable person in the UAE.
- The business must not carry out business in the UAE.
- The business must have a place of establishment and must be registered in its home country under the correct authority.
FTA does not allow foreign government bodies or non-resident tour operators to use this refund scheme. Only genuine business visitors who pay VAT during their UAE trip can claim.
What Changes Did FTA Make in the Updated VAT Refund Scheme?
The FTA updated the guide for VAT refunds for business visitors in April 2021. The most important changes are:
- Refunds now cover only expenses after the effective date of agreement between the UAE and the visitor’s home country.
- Applicants no longer need to submit the certificate of incorporation.
- Scanned tax invoices can be sent by email; you don’t need original hard copies.
- The official list of countries with reciprocal refund agreements is now on the FTA website, not in the guide.
Is There a Due Date for VAT Refund Requests?
You must follow these deadlines for your VAT refund:
- Each claim must cover 12 calendar months, unless you’re in a non-implementing GCC state.
- Refund applications for a year open on the FTA website every 1st of March.
- The deadline to submit a claim is always 31st August for the previous year.
- For example, if you want a refund for 2023, you must apply before 31 August 2024.
- The minimum refund amount per claim is AED 2,000.
If you miss the deadline, you lose your right to claim for that year.
What Documents Are Required for the VAT Refund?
When you apply for a VAT refund as a business visitor, attach these documents:
- Original Tax Compliance Certificate attested by the UAE embassy in your home country
- Valid tax invoices and payment proof for the expenses
- Copy of the passport of the authorized signatory
- Proof of authority of the authorized signatory
FTA may request more documents if they need clarification.
How to Submit a VAT Refund Request for Business Visitors in UAE
Follow these steps to submit your claim:
- Create an e-services account on the FTA website.
- Get your user credentials and create a taxable person account in the online portal.
- Open the VAT tab, then select “Business Visitor Refunds.”
- Fill out the application form carefully.
- Attach all required documents.
- Submit the form after reviewing your details.
- Wait for FTA to review your application.
- If your refund is approved, FTA processes the refund within four months.
- FTA sends you updates about your application status by email.
What Are the Benefits of VAT Refunds for Business Visitors?
- Foreign firms recover VAT paid during business trips.
- Businesses save costs and keep their finances healthy.
- Claiming VAT refunds shows good compliance with tax laws.
- With expert help, claims are processed smoothly.
For more information:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp: +971 50 276 2132
