UAE Business Visitor VAT Refund procedure is now live.
The UAE’s Federal Tax Authority (FTA )will only process refund applications for a 6 month period from opening (2 April 2019).
On 2 April 2019 UAE tax authorities announced the Business Visitors Refund procedure is launched.
The period of each refund claim shall be a calendar year (e.g. 1 st January 2018 – 31st December 2018). For claims in respect of the 2018 calendar year, refund applications can be made from 2nd April 2019. The opening date for Refund applications in subsequent calendar years will be 1 st March (i.e. for the period 1 st January 2019 – 31st December 2019, applications will be accepted from 1 st March 2020).
The FTA will only process refund applications for a 6 month period from the date businesses can first make a claim (i.e. 6 months from 2nd April 2019 for the 2018 calendar year, and 6 months from 1st March 2020 for the 2019 calendar year and respectively for all future years).
To be eligible, foreign businesses must meet four conditions:
- The business must not have a place of establishment in the UAE or in any of the VAT-implementing GCC states (currently Saudi Arabia and Bahrain).
- They must not be a taxable person in the UAE.
- They must be registered as an establishment with a competent authority in the jurisdiction in which they are established.
- They must be from a country that implements VAT and that equally provides VAT refunds to UAE businesses in similar circumstances.
The authority also clarified that businesses residing in any of the other GCC states may still submit a VAT refund application.