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VAT Refund Assistance

Maximize Your VAT Returns: Expert Assistance for Streamlined VAT Refund Process.

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Value Added Tax, or VAT, is a form of indirect tax that is occasionally referred to as a general consumption tax, and it is levied on most goods and services. Businesses will collect VAT from their customers and are eligible to deduct the VAT paid to their suppliers, and the net difference is settled with the Tax Authority. Overall, this has the effect of taxing the "value addition" throughout the supply chain.

What is VAT Assistance?

A Business may only sometimes be in a VAT-payable position to the Authority. For example, in some tax periods, businesses making only zero-rated supplies under VAT may end up in a VAT refund position. VAT refund position means that the total VAT paid by the company on its running expenditures exceeds the VAT charges on its sales/revenue. So what needs to be done?

In such a situation, the net VAT position in return will be negative, i.e., the FTA owes a VAT refund to the business. Therefore, it is well within the rights of a business as a UAE VAT registrant to request a refund of the excess VAT from the Tax authority. A separate claim form is required to be submitted to process this refund.

FTA approved Tax agent can assist with the following:

  • Advising on whether to claim a VAT refund or not.
  • Prepare the refund application and submit the same to the FTA.
  • Prepare the details necessary for a refund assessment by the FTA.
  • Liaise with FTA to secure the refund amount.

VAT PENALTY RECONSIDERATIONS

Businesses that have made errors in the return VAT or failed to comply with the UAE VAT requirements fully can be penalized by the FTA for such mistakes. But does it mean the business should only do something about the penalties if they pay them?

The answer is NO. Businesses are entitled to make an official request which is known as a "Reconsideration request," to the UAE FTA for:

  • Waiving off the penalty.
  • Reducing the penalty amount.
  • Seek an installment payment scheme for settling the penalties.

All businesses should exercise such rights and mechanisms available under the UAE VAT Law to try and reduce the financial burden of penalties. Any penalties imposed should be evaluated for the possible remedial actions that can be taken to minimize their impact.

Any such UAE VAT penalty waiver requests should be accompanied by a write-up detailing the facts of the case, relevant provisions of the Law, etc., which can help strengthen a case for a waiver. A weak appeal against a penalty can easily lead to its rejection.

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Advantages of VAT Refund Assistance

Simplified Process

Professionals knowledgeable in VAT refund procedures can guide you through the paperwork and ensure compliance with the specific requirements of each country.

Time-Saving

VAT refund procedures can be complex and time-consuming. Assistance services can streamline the process, saving you time and effort.

Maximizing Refunds

Experts can help identify eligible purchases and ensure you claim the maximum refund amount possible.

Language Barriers

If you're unfamiliar with the local language, VAT Refund Assistance can bridge the communication gap and help navigate the process effectively.

What we provide

  • Evaluating the penalties imposed by analyzing the violations.
  • Advise on the possible course of action and expected outcome.
  • Prepare the necessary declarations to be submitted along with the waiver request.
  • Submit the waiver request on your behalf and liaise with FTA on it.

FAQs

What is VAT Refund Assistance?

VAT Refund Assistance is a service that helps individuals, or businesses claim refunds on Value Added Tax (VAT) paid on eligible purchases made in a foreign country. In addition, it assists with the documentation and filing process required to obtain VAT refunds.

 

How does a VAT refund work?

VAT refund systems vary between countries, but generally, when you purchase a visitor in a foreign country, you pay VAT on the goods or services. If you are eligible for a VAT refund, you can collect the necessary documentation, such as receipts and completed tax forms, and submit them to the appropriate authorities. After processing your claim, you will receive a refund for the VAT amount.

 

Who can benefit from VAT Refund Assistance?

VAT Refund Assistance is typically beneficial for travelers or businesses that make significant purchases while visiting foreign countries. In addition, many countries have VAT refund programs for non-residents, allowing them to claim back a portion of the VAT paid on eligible purchases.

 

How much can I expect to receive from a VAT refund?

The amount of the VAT refund depends on the country's VAT rate and the eligible purchases you made. Typically, the refund is a percentage of the VAT paid on eligible goods or services. However, the specific refund rate can vary between countries.