As the UAE continues to attract international businesses, many foreign businesses conducting commercial activities in the UAE may incur VAT on business expenses. Such business expenses, such as accommodation, event participation, transportation, business meetings, or other commercial activities within the country, these activities can result in VAT being charged on various business expenses.
The good news is that businesses can claim this VAT back through the UAE’s refund scheme. As the submission deadline for VAT incurred during 2025 approaches, foreign businesses should take proactive steps to assess their eligibility and review required records, prepare the necessary documents to avoid last-minute challenges and potential delays.
What is the UAE Business Visitor Refund Scheme
The UAE Business Visitor Refund Scheme allows qualifying foreign businesses that are not established or registered in the UAE to reclaim VAT incurred on eligible business expenses. The scheme helps reduce the tax burden on international businesses conducting temporary business activities in the UAE.
For many foreign companies, VAT recovery can result in significant savings, particularly when participating in trade fairs, exhibitions, business meetings, and other commercial activities within the country.
Who is eligible to claim a VAT refund in the UAE?
To qualify for a VAT under the UAE VAT Refund Scheme, a foreign business must meet the following conditions:
- The business must be established outside the UAE
- The business must not be registered for VAT in the UAE
- The business must not have a place of establishment or fixed establishment in the UAE.
- The business must not be carrying on business activities in the UAE that require VAT registrations.
- The business must be established in a country that offers reciprocal VAT refund arrangements to UAE businesses.
A thorough review of the eligibility criteria can help businesses determine whether they qualify for a VAT refund in the UAE.
What expenses may qualify for VAT refund in the UAE?
An eligible foreign business can claim a refund of VAT paid on a range of business expenses incurred in the UAE, such as:
- Accommodation expenses
- Exhibitions and conference participation fees
- Business meeting and event cost
- Professional and consultancy services
- Travel and transportation expenses
- Other eligible business expenditure in accordance with UAE VAT regulations.
Understanding which expenses qualify for VAT recovery can help businesses maximize their refund claim while remaining compliant with UAE VAT regulations.
Documents required for VAT refund claim in the UAE
Before submitting a VAT refund claim in the UAE, a foreign business should start by gathering the necessary documents and reviewing its eligibility. Having complete and accurate financial records not only supports the claim but make the application process smoother and reduces the likelihood of delays or additional requests.
- Valid tax invoices: All expenses included in the refund claim must be supported by valid UAE tax invoices. The invoices should comply with UAE VAT regulations and clearly show the supplier’s Tax Registration Number and be addressed to the claimant.
- Proof of payment: The UAE FTA requires evidence of payments made to the UAE vendors in the claim to support the refund application and facilitate the review process. Foreign businesses must collect official receipts and confirmation letters from the UAE vendors for these purposes.
- Certificate of business establishment: Foreign businesses should be prepared to submit evidence of their legal business registration and operation in their country of residence, as this helps verify their eligibility for the VAT refund scheme.
UAE VAT Refund claim Period for 2025 Expenses: key deadline
The UAE Federal Tax Authority accepts VAT refund applications from eligible foreign businesses in a designated filing period each year. For VAT incurred during the 2025 calendar year, applications can be submitted through the Emara Tax platform from 1st March 2026 to 31st August 2026.
With this short timeline, it is pertinent for businesses to prepare for the same by collecting supporting documentation, including valid tax invoices and other relevant records well in advance.
If a business incurred VAT in the UAE during 2025, it is important to be aware of the claim submission window. The VAT refund application must be submitted through the Emara tax window between 1st March 2026 and 31st August 2026, giving businesses time to compile the necessary documents.
Minimum claim Threshold for UAE VAT refunds
As per the UAE Business Visitor Refund Scheme, foreign businesses must meet a minimum claim threshold of AED 2000. It is better to review eligible expenses and total VAT incurred in advance to confirm that the minimum claim threshold is met.
How to apply for a UAE VAT refund as a foreign business
Those foreign businesses seeking to recover VAT incurred in the UAE must submit their application through the UAE FTA online portal. Understanding the UAE VAT refund application process and preparing the records documents in advance can help to ensure a smooth submission.
Step 1: Sign up on the UAE FTA EmaraTax portal: The first step in the UAE VAT refund claim process is to create an account on the Emarartax portal and set up a taxable person profile to access Business Visitor Refund Scheme services.
Step 2: Complete the VAT refund application. Once registered, businesses can access and complete the foreign business VAT refund application through the portal.
Step 3: Prepare documents: The application should be supported by relevant documents, such as:
A tax compliance certificate, business registration certificate or equivalent document issued by the relevant authority in the county of establishment
- Valid UAE tax invoices showing the supplier’s Tax registration Number (TRN)
- Proof of payment for expenses being claimed
- Passport copy and authorization documents for the authorized signatory, where applicable
- Additional declarations or supporting documents are required by the FTA based on the applicant’s circumstances.
- A declaration confirming the percentage of input tax recoverable if the business carried out exempt or non-business activities in its home country.
Step 4: Upload supporting documents: All required documents should be uploaded through the FTA portal. Businesses should retain original records as the FTA may request additional verification during its review.
Step 5: Submit the VAT refund claim: After completing the application and uploading the required documents, businesses can submit their claim through the portal for review by the FTA.
A common reason UAE VAT refund applications get rejected
Many UAE VAT refund claims are rejected or delayed due to:
- Missing or incomplete documents
- Invalid tax invoices
- Insufficient proof of payment being payment receipts and confirmation letters
- Errors in the application
- Failure to meet the eligibility requirement
- Missing attestation or supporting certificates from the home jurisdiction
A well-prepared application supported by complete documentation can significantly improve the likelihood of a successful VAT refund claim.
UAE VAT refund application processing timeline
Once a complete VAT refund application has been submitted, the UAE FTA reviews and processes the claim within the prescribed timeframe. Provided all the required documents are submitted, the UAE FTA may take up to 4 months to review and process a VAT refund application from the date a complete application is submitted.
Once the UAE FTA approves the VAT refund application, the refund amount is usually issued within 10 business days, allowing businesses to recover eligible VAT without unnecessary delays.
Why Businesses Should Act Early
If your business incurred VAT in the UAE during the claim period, now is the time to review its eligibility and begin preparing its refund claims as early as possible. Waiting until the filing deadline may leave insufficient time to gather supporting documents, obtain attestations, and address any issues that could arise during the application process.
Starting the process early can make the VAT refund journey much smoother, giving businesses ample time to gather documents, verify eligibility, and submit a well-prepared UAE VAT refund claim.
How Jaxa can help with UAE VAT refund claims for foreign businesses
Recovering VAT in the UAE can be challenging for foreign businesses, particularly when dealing with eligibility requirements, supporting documentation, and regulatory procedures. As a UAE FTA-approved tax agent with over 19 years of experience in UAE accounting, auditing, and taxation, Jaxa Auditors assists clients at every stage of the VAT refund process.
Jaxa’s UAE VAT refund services assist in:
- Assessing eligibility under the UAE Business Visitor Refund scheme
- Reviewing tax invoices and supporting documentation
- Preparing and submitting VAT refund applications
- Liaising with the UAE FTA on behalf of clients
- Addressing UAE FTA queries and information requests
- Providing expert VAT advisory services to maximize eligible VAT recovery
With extensive experience assisting businesses across various industries, Jaxa helps ensure that VAT refund claims are prepared accurately, submitted efficiently, and managed in accordance with UAE FTA regulations.
Conclusion
Recovering UAE VAT can provide valuable cost savings for eligible foreign businesses. By understanding the eligibility requirements, preparing the necessary documentation, and submitting a complete application within the prescribed deadline, businesses can take complete advantage of the UAE Business Visitor Refund Scheme.
Partnering with Jaxa can help simplify the process, reduce administrative burdens, and ensure your VAT refund claims are handled with confidence and compliance.
Looking to recover VAT incurred in the UAE?
Trust Jaxa, a UAE FTA-approved tax agent with over 19 years of experience, to guide you through the UAE VAT refund process.
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