Here we would like to brief about the procedures for VAT Refund as we found that there is an increasing need among our customers for the VAT Refund due to the current market situation.
Refundable situation mainly happens when the Taxable Sales are less than the Taxable Purchases. The registrant can either keep the refundable amount as a credit with FTA so that they can adjust with the payable amount in the next VAT periods or they can go for the Refund by submitting Refund application “VAT Form 311”.
Application must be filed diligently and assurance must be there that all the
returns filed are accurate, true and fair as per the UAE VAT legislations and
there is no requirement to file Voluntary Disclosures for rectification of the
historical VAT Returns.
In order that the Federal Tax Authority shall elevate the level of service when reviewing the refund request, taxable person are advised to provide the following supporting documents when applying for a refund for each tax period for which the refund is being requested.
The supporting documents required to be submitted are mentioned below:
- Summary of the VAT Output and VAT Input in a Refund Excel format.
- Five of the highest value Tax Invoices/Invoices for each category in the VAT Return where applicable (Standard rated supplies, Zero rated supplies, Exempt supplies, Out of scope supplies and Expenses).
- Official and Commercial evidence in cases where there are exports of goods: five highest-value related invoices accompanied by the relevant customs declarations and Bill of Lading.
- International Bank Account Number (IBAN) validation.
A Bank Account validation letter / certificate must be provided to the FTA. This letter must be issued and stamped by bank and should include below details of the Tax Registrant:
- Name (must be the same
as the taxable person’s name as registered with the FTA)
- Bank’s name
- Bank’s Address, SWIFT/ BIC and the IBAN
Timeframe for Refund
FTA will review the application within 20 working days. If any further details are required, FTA will request for Resubmission by adding a comment as required. FTA will also notify its decision to accept or reject the refund claim. The FTA may also notify the applicant that it requires a longer period than (20) business days to consider the application where appropriate.
Upon approving the Refund Application, FTA will process the
refund amount within 5 working days to the registrants Bank Account.
How to claim VAT Refund in UAE for Businesses?
To submit a VAT refund claim:
- Log in to the FTA’s e-Services portal.
- Go to the VAT tab, then the VAT Refunds tab, and access the form by clicking VAT refund request.
- Complete the form. Some of the fields are pre-populated using the details from your account. Make sure that the details you’ve entered are correct, then submit the form by clicking ’Submit’.
- After you submit the form, you will receive an email from the FTA to notify you of the result of your refund application. Once the claim is approved, the refund will be processed within 5 business days.
- You can verify the refund amount by checking your balance from the My Payment tab under the Transaction History section in the e-Services portal.