The launch of VAT in the UAE in 2018 marks a transition towards creating a more balanced economy while decreasing its dependence on oil exports. A business must register for VAT in the UAE upon reaching the specified turnover. At the same time, tourists in the UAE can take advantage of the Tax Refund for Tourists Scheme to get refunds on qualifying purchases. Whether you’re a business recovering VAT or a traveler claiming a VAT refund in the UAE, understanding the VAT refund process can lead to significant savings.
Managing the VAT refund process in the UAE can be tricky and time-consuming; it is a good decision to seek the help of a tax agent in the UAE, who is qualified to simplify the UAE VAT refund process. Claiming your VAT refund just got easier! Jaxa Chartered Accountants, the UAE’s trusted FTA-approved tax agent, makes VAT refunds easy to understand, guiding you through eligibility, paperwork, and step-by-step instructions.
What is VAT Refund in the UAE?
A VAT in the UAE is the financial reimbursement of Value Added Tax paid on certain eligible goods and services. This system is governed by the UAE FTA under specific rules and procedures. To receive a VAT refund in the UAE, you must first qualify and then apply through the proper procedure—it doesn’t happen by default.
Jaxa, an FTA-registered tax agent in the UAE, can assist in the VAT refund process.
Your Guide to UAE VAT Refund Criteria for Tourists
If you’re a tourist shopping in the UAE, here’s what you need to qualify for a VAT refund in the UAE:
- Residency criteria: The refund is available to tourists who are not UAE residents. Citizens living in the GCC outside the UAE can claim a VAT refund, but UAE nationals studying abroad face some restrictions.
- Minimum Age Criteria: To qualify for VAT refund in UAE, tourists must be 18 years or older and cannot be part of the crew on any aircraft or vessel leaving from an implementing state.
- Registered Retailers: Only goods bought from stores participating in the Tax Refund for Tourists Scheme qualify for a VAT refund in the UAE.
- Minimum Purchase Requirement: Tourists must spend a minimum of AED 250 in a single transaction to be eligible.
- Non-Consumption Rule: To be eligible, goods must be unused in the UAE and physically present with the tourist at the time of departure. Items such as motor vehicles, boats, aircraft, and services are not eligible for a refund.
Who can claim a VAT Refund in the UAE?
According to the Federal Tax Authority in the UAE, VAT refunds are available to defined groups. Here’s who is entitled to claim.
Tourists
Tourists in the UAE can claim a VAT refund on goods they purchase from approved retailers through the Tourist Tax Refund Scheme.
Qualification
- The tourist must not live in the UAE.
- Items must be bought from stores approved by the UAE Federal Tax Authority (FTA).
- To qualify for a refund, the items must leave the UAE within 90 days after purchase.
- The UAE VAT refund must be claimed using the official system at the airport, seaport, or land border when leaving the country.
Foreign Business
Qualification
- This applies to Foreign business entities who do not make any supplies in UAE.
- The minimum claim amount of Tax that may be submitted under VAT Refunds for Foreign Businesses Scheme shall be AED 2,000.
Steps to Get a VAT Refund for Tourists in the UAE
- Make purchases from UAE FTA-registered retailers under the Tourist Tax Refund Scheme.
- Secure an electronic UAE VAT refund invoice at checkout.
- Submit your refund documents at the VAT refund counters located at airports or other exit points.
- Choose from available refund options: cash, credit card reimbursement, or bank transfer.
Our VAT consultants at Jaxa in UAE, with a wealth of expertise and experience in managing the complexities of the VAT application process by handling all paperwork and ensuring UAE FTA compliance, help every client to maximize refunds with minimal effort.
Steps to Get a VAT Refund for Foreign Business
1. Confirm the eligibility
- No business presence in the UAE
- The VAT refund must relate to business expenses only (not personal or exempt activities).
2. Required Documents Checklist
- Original or scanned VAT invoices
- Proof of expense payment (e.g., bank slips or credit card statements)
- Official certificate of business registration abroad
3. Refund claim can be submitted by signing up your business by creating an account on the UAE FTA’s EmaraTax portal.
4. Submit the online VAT refund request with all paperwork within 12 months of end of the year.
5. After approval, the refund is sent directly to your bank account in the currency you choose.
Jaxa Chartered Accountants, a UAE FTA-registered tax agent, simplifies the process.
Documents Needed for VAT Refund in UAE
For Tourists:
- Receipts from VAT-authorized shops are eligible for refund claims.
- Passport and boarding pass as proof of travel out of the UAE.
- Official VAT refund slip provided at the refund point or retailer.
For Foreign Businesses:
- Special refund form to be submitted on EmaraTax portal.
- Original tax invoices indicating VAT charges.
- Customs paperwork for any import or export-related VAT claims.
Take Assistance from Jaxa for VAT Refund Service in UAE?
Jaxa Chartered Accountant is a trusted auditing, accounting, and taxation firm in the UAE. As a licensed UAE FTA tax agent, it offers end-to-end VAT refund services, from initial consultation to complete documentation, ensuring a hassle-free experience.
Our deliverables
- End-to-end VAT refund assistance
- UAE FTA-Authorized Expertise at Your Service
- Handling error-free documentation
- Following All UAE VAT Compliance Norms
- VAT claim process with Regular Updates
Partner with Jaxa, your go-to VAT and corporate tax compliance partner in the UAE and Dubai. Connect with Us for Hassle-Free VAT Refunds in UAE!
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