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Home » What’s it all about a Dubai Vat Refund?

What’s it all about a Dubai Vat Refund?

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dubai vat refund

Introduction

Each citizen paying taxes in the UAE is capable of requesting a VAT refund based on the Federal Tax authority launching the “tax refund” policy in November 2018. The only criterion for claiming a VAT refund Dubai is that the input tax should be exceeding the output tax. 

That’s why the official portal of the UAE government introduced the EmaraTax platform for controlling all tax procedures.

Know More About How to Download VAT Certificate from EmaraTax

Importance of VAT Dubai for businesses and tourists 

When it comes to businesses, claiming a VAT refund in the UAE is all about recovering the input VAT paid (based on eligible business expenses). This tax refund Dubai can act as a trigger for reducing the firm’s overall costs for conducting business practices and improving cash flow. As well, this helps promote companies from VAT return in Dubai

On the other hand, Dubai authorities offer a Value Added Tax (VAT) refund policy for tourists, for the sake of encouraging them to shop more. Tourists include all those who are aged over 18, and not residents in the UAE that makes them eligible for VAT refunds on purchases made.

Know More About VAT Consultants in Dubai

Eligibility for Dubai VAT refund

Certain regulations allow eligible tourists only for VAT refund Dubai. These requirements are:

  • Travelers aged 18 and over who are not residents in the UAE.
  • Not a crew member on flights, or ports leaving the UAE.
  • Tourists who are GCC Nationals and reside in foreign countries for studies.

As the eligible requirements for refunding VAT Dubai tax for those who are local business owners are:

  • Owning a UAE national passport.
  • providing supporting documentation such as a family book or marital status.
  • Providing legal business documentation showing the possession of such business.

On the contrary, when it comes to foreign business ownership, eligible requirements are needed for applying VAT refund Dubai:

  • The business should be a foreign entity carrying business operations that has another location in a GCC member state other than the UAE that provides VAT refunds to UAE entities.
  • The business owner shouldn’t be a taxable person in the UAE.
  • The business should be registered in the specific GCC member state. 

For this reason, businesses should submit VAT form signed and filled for the purpose of tax refund Dubai.

Know More About Threshold For VAT Registration in UAE

Required form to be filled for VAT tax refund Dubai

dubai vat refund

The required form for claiming VAT tax refund for businesses in Dubai contains specific fields that need to be filled:

  • TRN (Tax Registration Number): It’s advisable to verify if the prepared TRN is valid and ready for use. This field information is listed in the taxpayer’s User Profile tab.
  • The amount of Refundable Tax: This field is based on this equation → Refunds – Penalties = Refundable Tax. This includes refunds submitted in the VAT returns.
  • The needed amount for refunding: This amount must be equal or less than the amount displayed in the amount of Refundable Tax.
  • Remaining amount of eligible Refundable Tax: This is the future amount of refundable tax.
  • Late registration penalty amount: This field is based on the penalties imposed.

Thus, completing this form is a required step in the process of claiming VAT return in Dubai and the UAE, that’s why it’s necessary to mention the other documents required for this process.

Know More About Corporate Tax in UAE 2023

Documents required for completing Dubai VAT refund

These documents include:

  • Valid passport or GGC national ID: Copies aren’t eligible for this process; it’s a must.
  • Tax invoices: It includes the “tax refund” tag that happens to possess after purchasing a specific product whether for businesses or individuals. This receipt should have the name on it.
  • The items purchased: This is an important step for showing off the items to the staff responsible for items validation for applying the VAT tax refund Dubai.
  • Proof of departure & payment: In case of foreign claiming, a valid ticket that shows the departure from the UAE is required. As well, issuing a bank account validation certificate for getting approval by the FTA. In case of residency, payment proof is a necessity for confirming the transfer from a specific TRN to another.
  • Online boarding pass: This one is for individuals that use one of the shopping malls or hotels to process their VAT tax refund Dubai

Documents gathering is the preparation step for doing the whole procedures of claiming the VAT return in Dubai.

Know More About UAE Tax Residence Certificate

Procedures for reclaiming VAT return in Dubai

dubai vat refund

After purchasing eligible products for VAT return tax in the UAE, some steps are required:

1st Step: Heading to a Tax-Free Validation Desk in Dubai International Airport, that should be visited before the check-in process. In case of traveling by the sea, validation points will be found at Port Rashid seaport.

2nd Step: Choosing the preferred refund method (cash, or credit card or e-wallet).

3rd Step: Leaving the UAE, the refund will be sent after making the procedures.

As these steps could be done online through requesting the VAT refund form mentioned previously from the FTA in the UAE for easier claim of VAT tax refund Dubai.

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Locations of tax refund Dubai 2024

Validation points for entry and exit are surrounding the UAE. All that’s needed is finding the sign that reads “VAT Refund” in the following points:

Abu Dhabi Airport

Dubai Airport 

Business Sharjah Airport

Al-Ain Airport

Although there are a lot of terminals for validation points in each airport, tax refund Dubai airport is the most recommended option for those residing or visiting Dubai.

Know More About Business Setup in Dubai

Applicable Channels for claiming Dubai VAT refund

Applying tax-free services that makes it easy for travelers to get tax refunds without any hassle. There are two ways for claiming VAT tax in Dubai that are:

  1. Manned validation desks: These are validation points located at exit for each emirate like airports, and sea ports. They are generally open 24/7, but in case validation desks aren’t available, the relevant border authority can help by checking their schedule.
  2. Self-service kiosks: These are digital machines that are designed for convenience 24/7. Such that they are used to validate tax-free forms for claiming VAT refund Dubai.

Conclusion: What it takes to claim Dubai VAT refund in the UAE!

Claiming VAT tax refund Dubai is a beneficial process that can be complicated sometimes if not made properly and carefully. That’s why heading to a tax agency for reclaiming VAT refund can be a reliable option for not losing any returns needed. 

FAQs:

What’s the percentage of VAT refund in Dubai?

The VAT tax refund Dubai percentage for tourists is 87% of the total VAT paid by the tourist, after deducting a service charge of 4.80 AED for each transaction.

How long does VAT return in Dubai take?

The procedures for obtaining VAT refund can take up to 30 days from completing the procedures successfully.

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