How Can I Get My Tax Refund in UAE?


How can I get my Tax Refund in UAE? Is this a VAT refund or a Corporate Tax Refund?

The United Arab Emirates (UAE) is popular for its tax-friendly nature in the world. However, the country has applied the corporate tax and Value Added Tax (VAT) to people like you conducting their business in this country. As a result, you must pay the VAT and corporate tax if you operate your business in this country. However, there are a few scenarios where you must opt for VAT and corporate tax refunds in the UAE.

Are you looking for the procedure for applying for a tax refund in the UAE? In that case, you should give time to this article. Here, we will explore the scenario in which you can apply for the corporate tax and VAT refund. In addition, you will get a guide to the Tax refund process in UAE.

VAT Refund vs. Corporate Tax refund

We are sure that you might be thinking that the Corporate Tax refund and VAT refund are the same. Indeed, you are a little bit right because the main motive of both refunds is to provide you with a refund of the taxable amount. Besides motive, other aspects of the corporate tax and VAT refund are different. So, let us look at a quick overview of both VAT and corporate tax refunds in the UAE:


VAT Refund

A Value Added Tax (VAT) is a procedure in which you can reclaim the tax paid on a purchase. While conducting your business in the UAE, you should keep track of your business’s purchasing to ensure proper documentation when filing for the tax refund.

You may apply for a VAT refund in case the input tax connected to your overall business activities is larger than the output tax on the VAT return. It will help you to eliminate double taxation and unnecessary taxes do not weigh you.


Corporate Tax Refund

As per Article 49 of a Corporate Tax Law, there may be circumstances where a taxable person like you has paid more than the corporate tax due to the Federal Tax Authority (FTA). In such cases, you can apply for a corporate tax refund.

Till now, we have discussed the difference between VAT and corporate tax refund. Now, let us move forward with the essential aspects and process of VAT refund. Later, we will discuss more things about the corporate tax refund. 


Why should you apply for a VAT refund in the UAE?

We are sure you might be waiting for the UAE VAT refund process. But we know some of you might still be confused about the main motive for applying for the VAT refund. Our main goal is to clear all your doubts through this article. So, let us understand why you apply for the VAT refund in this country.

You should claim the VAT refunds in the UAE to recover the input VAT paid on eligible company expenses, like supply and services, which can reduce the overall cost of performing business and improve the cash flow of your business. These refunds also contribute to fair competition as they eliminate the cost of VAT on your organizational expenses, allowing your business to operate without financial burden.  

VAT Refund Criteria in the UAE

Are you planning to claim the VAT refunds in UAE? In that case, you should meet the VAT refund criteria in UAE.  If you want to be eligible for a VAT refund, you must be a non-resident of this country and meet the least purchase threshold, usually set at AED 250*.

In addition, you should remember that the VAT refund applies to the products taken out of the UAE, not services or consumable goods like beverages and food. As a foreign business owner, you can apply for a VAT refund if you satisfy the following criteria:

  • Your business should be situated in a GCC member state other than the implementing state in the UAE.
  • Your business should be registered in the GCC member state where your company is located.
  • Your business should be a foreign entity that conducts business activities but doesn’t have a place of fixed establishment or establishment in the UAE.
  • Your business owner should not be a taxable person.


What are the steps to claim a VAT refund?

The following is the list of steps you should follow to claim a VAT refund:

  1. You should log in to the FTA e-Service Portal using your username and password.
  2. Next, you should visit the “VAT” tab in the portal.
  3. Now, you should click the “VAT Refund Request” to assess the refund form.
  4. After assessing the refund form, you must fill in the required details in the form.
  5. Lastly, you must click the submit button once completing the form.


When will you get the VAT refund?

The FTA will usually review your VAT refund application, process and notify you within 20 business days. While reviewing, the FTA may will accept or reject your VAT refund claim. Once approved, you will get the VAT refund within five working days.

So, now, you have understood everything about VAT refunds. Let's move forward with the corporate tax refund.


Requirements for claiming the Corporate Tax refund in the UAE

You may apply to the FTA for a refund in line with the requirements of the Tax Process law in the following instances:

  • The Withholding tax credit available to you exceeds its corporate tax liability due under the law.
  • Any other situation where the FTA ascertains that you have paid corporate tax in excess to what you are liable to pay as per your corporate tax payable.


Corporate Tax Refund Process in UAE

You can submit the formal application to the FTA in the form and manner determined by the same authority. The FTA will review the application for 20 business days. After approval, they will refund the corporate tax within five days.


How can Flyingcolour Tax Consultants help you?

Whether you want to claim VAT or a corporate tax refund, the Tax refund process needs to be applied in the manner prescribed by the authority in order to avoid the rejection or delay in processing the refund. Flyingcolour Tax Consultants can help you claim both VAT and corporate tax refunds. Our experts ensure you obtain the refund most easily.

To learn more about How I Get My Tax Refund in UAE, book a free consultation with one of the Flyingcolour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.

This article was published on 20-06-2024. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent updates or changes.

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