VAT Refund Assistance

VAT Refund Assistance
by Aswani

VAT Refund Assistance in Abu Dhabi

Businesses in the UAE can get money back on the VAT they pay for their own expenses, if their total VAT paid is higher than the VAT they collect from customers. This is called a VAT refund. Tourists can also get a VAT refund on goods they buy and take out of the UAE. This is known as the Tax-Free Shopping Scheme.

VAT refunds can be requested online through the UAE government’s EmaraTax portal. However, for a faster and smoother process, it’s recommended to seek professional help. HLB Abu Dhabi has VAT refund experts with the latest knowledge to assist you. We can simplify the procedure and make claiming your VAT refund as easy as possible.

What is VAT refund?

In the United Arab Emirates (UAE) Value Added Tax (VAT) system, a VAT refund arises when a registered business incurs a higher amount of input tax compared to the output tax for a specific tax period.

Here’s a breakdown of the terms:

Input Tax: This refers to the VAT a business pays on its own purchases, such as goods, services, or rent.

Output Tax: This represents the VAT a business collects from its customers on the sale of taxable goods and services.

A VAT refund allows a business to reclaim the excess input tax it has paid. This situation occurs when the business acts as a collection agent for VAT, remitting the difference between the input tax it pays and the output tax it collects to the government.

Eligibility for VAT Refunds in the UAE

Businesses: Any company registered for VAT in the UAE can claim a VAT refund. The crucial factor is that the business’s input tax (VAT paid on purchases) must exceed its output tax (VAT charged on sales). In simpler terms, the business must have paid more VAT than it collected from customers.

Tourists: Individuals who purchase goods in the UAE and export them are eligible for a VAT refund under the Tax-Free Shopping Scheme. Tourists can claim the refund at the airport upon departure by presenting the purchased goods and verified receipts.

Timing of VAT Refund Claims

Businesses: VAT-registered businesses can claim refunds quarterly when filing their VAT returns or annually after the fiscal year ends. The ideal time to claim a refund is when the business has an excess VAT credit, meaning the input tax surpasses the output tax.

Benefits of Timely Claiming: By claiming the excess credit as a refund instead of carrying it forward to the next tax period, businesses can improve their cash flow, particularly those that consistently experience VAT refund positions.

Claiming a VAT Refund in the UAE: A Step-by-Step Guide

The UAE offers a streamlined online process for VAT refund claims via the EmaraTax portal. Here’s a breakdown of the steps involved:

  • Access EmaraTax Portal: Begin by logging in to the EmaraTax portal using your registered credentials (username and password).
  • Navigate to Refund Section: Once logged in, locate the “VAT” section on the dashboard. Within this section, select the option labeled “New Refund Request.”
  • Complete Refund Form: A dedicated form will appear. Carefully fill in the required details, including:
  • Attach Supporting Documents: Upload scanned copies of all necessary supporting documents. These typically include the VAT invoices you paid for eligible purchases.
  • Additional Information:  Provide any relevant transaction details or comments that might be helpful in processing your claim.
  • Review and Submit: Before submitting the VAT refund request, thoroughly review all the information you’ve entered for accuracy. Once satisfied, submit the completed form.
  • Track Your Claim: Upon submission, you’ll receive a unique application number. Keep this number for future reference and tracking purposes.

How HLB Abu Dhabi Streamlines Your VAT Refund Process

Navigating VAT refunds in the UAE can involve complexities, but HLB Abu Dhabi is here to simplify the process for your business. Here’s how our expertise benefits you:

  • VAT Refund Specialists: Our team comprises VAT refund specialists who possess in-depth knowledge of UAE regulations and the latest procedures. This ensures your claim meets all the requirements for a smooth and swift approval.
  • Accuracy and Efficiency: We meticulously review your VAT records to identify any potential discrepancies or missed opportunities for claiming refunds. This ensures you receive the maximum amount you’re entitled to without delays due to errors.
  • Streamlined Online Filing: We can guide you through the EmaraTax portal’s online VAT refund process, ensuring all the necessary details and supporting documents are submitted correctly. This minimizes the risk of rejection and keeps the process moving efficiently.
  • Timely Claims and Improved Cash Flow: By helping you claim refunds promptly, we contribute to improved cash flow for your business. This frees up valuable resources that can be reinvested in your operations or growth initiatives.
  • Ongoing Support: Even after your initial claim, HLB Abu Dhabi remains a valuable resource. We can answer your questions, provide ongoing guidance on VAT regulations, and ensure you maximise your VAT refund opportunities throughout the year.

How HLB Abu Dhabi Can Help?

Navigating VAT deregistration can involve complexities. HLB Abu Dhabi’s team of VAT consultants can assist you in determining your eligibility, preparing the application, and ensuring a smooth and compliant deregistration process.

Contact us today to discuss your specific situation and learn how we can help.

Call or Email us: +971 50 742 7124 or abudhabi@hlbhamt.com

Frequently Asked Questions (FAQ’s)

  1. Who is eligible to claim a VAT refund in the UAE?

    Businesses registered for VAT in the UAE can claim a VAT refund if their input tax (VAT paid on purchases) exceeds their output tax (VAT charged on sales). Additionally, tourists who purchase goods in the UAE and export them are eligible for a VAT refund under the Tax-Free Shopping Scheme.

  2. When can businesses claim a VAT refund in the UAE?

    VAT-registered businesses can claim refunds quarterly when filing their VAT returns or annually after the fiscal year ends. It’s advisable to claim a refund when the business has an excess VAT credit, meaning the input tax surpasses the output tax.

  3. How can businesses claim a VAT refund in the UAE?

    Businesses can claim a VAT refund through the UAE government’s EmaraTax portal. They need to log in, navigate to the VAT section, and select the option for a new refund request. Then, they must complete the refund form with necessary details, attach supporting documents, review, and submit the form. After submission, they can track the claim using the provided application number.

  4. How can HLB Abu Dhabi assist with VAT refund processes?

    HLB Abu Dhabi offers VAT refund specialists who provide expert guidance on navigating UAE regulations and procedures. They ensure accuracy and efficiency in claiming refunds, help businesses streamline the online filing process through the EmaraTax portal, and provide ongoing support to maximize VAT refund opportunities and improve cash flow.