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TAX Refund | VAT Refund

Updated: Aug 23, 2019

The FTA (Federal Tax Authority) may according to the conditions, restrictions and procedures specified in the Executive Regulation of the Decree-Law of value added tax, return Tax paid for any supply received by or Import carried out by any of the following:

  • A citizen of the State in respect of the Goods and Services related to the construction of a new residence that is not part of the Person’s Business.

  • A Non-Resident, who is not a Resident of an Implementing State and conducts a business and is not a Taxable Person.

  • A Non-Resident, for Goods supplied to him in the State and that will be exported.

  • Foreign governments, international organisations, diplomatic bodies and missions according to treaties that the State is a party to.

  • Any Persons or classes listed in a Cabinet Decision issued at the suggestion of the Minister.

Business visitors Tax refund

  • The Authority shall implement a Businesses VAT Refund Scheme for Foreign Businesses to allow the repayment of Tax on expenses incurred in the State by a foreign entity which has no Place of Establishment or Fixed Establishment in the State or the Implementing State, and is not a Taxable Person.

  • For the purpose of this Article, a “foreign entity” is any Person that carries on a Business as defined in this Decision and is registered as an establishment with a competent authority in the jurisdiction in which he is established.

  • A foreign entity is not entitled to make a claim under the VAT Refunds for Foreign Businesses Scheme in the following cases:

  1. If it makes supplies which have a place of supply in the State, unless the Recipient of Goods or Recipient of Services is obliged to account for the Tax on those supplies in accordance with Clause (1) of Article (48) of the Decree-Law.

  2. If the Input Tax relates to Goods or Services for which the Tax is not recoverable in accordance with Article (53) of this Decision.

  3. If the foreign entity is from a country that does not in similar circumstances provide refunds of value added tax to entities that belong to the State.

  • A foreign tour operator is not entitled to make a claim under the VAT Refunds for Foreign Businesses Scheme in connection with undertaking activities as a tour operator.

  • The claim for any refund shall be made on an electronic form as will be provided for the purpose by the Authority.

  • The claim form shall contain such particulars as may be required by the Authority including:

  1. Name and address of the foreign entity.

  2. Nature of activities of the foreign entity.

  3. Details of the registration of the foreign entity with the competent authority in the country where it is established.

  4. Description of reasons for incurring expenses in the State.

  5. Description of activities undertaken in the State.

  6. Details of expenses incurred in the State during the period of the claim.

  • The claim shall be accompanied by such documents or other evidence as may be required by the Authority.

  • The period of the claim shall be 12 calendar months.

  • The minimum claim amount of Tax that may be submitted under VAT Refunds for Foreign Businesses Scheme shall be AED 2,000.

  • As an exception to Clause (1) and Paragraph (c) of Clause (3) and Clause (8) of this Article, Businesses resident in any GCC State that is not considered to be an Implementing State according to the Decree-Law and this Decision, may submit an application for refund of Tax incurred on Goods and Services supplied to them in the State.




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