On a business trip to the UAE? Here is the process to get a VAT refund

Dubai: If you are visiting the UAE for business – whether for a conference, exhibition, or other business-related work – your company may be eligible to recover Value Added Tax (VAT) on its business expenses. The service is offered by the Federal Tax Authority (FTA), where foreign businesses can use the ‘Business Visitor Refund Scheme’ to claim VAT refunds, reducing costs and overall business expenses in the UAE. Just make sure you keep track of the business-related purchases in the country and have the original copies of the receipts, as you will need this documentation when applying for the refund.

Who can apply for a VAT refund?

To qualify for a VAT refund under the FTA, foreign businesses must meet the following conditions:

• They have no established place of business in the UAE or an ‘implementing’ GCC state.
• Not registered for tax purposes in the UAE.
• No active business operations in the UAE.
• Officially registered as a business in their home country.
• Based in a country that has a reciprocal VAT agreement with the UAE’s Ministry of Finance (MOF) (listed below)

Note: Gulf Cooperation Council (GCC) states are only considered ‘implementing states’ if they treat the UAE as such under their own VAT laws. If the businesses are established in non-implementing GCC states, they can still apply for refunds through this scheme.

Refunds are not available if:

• The foreign business provides goods or services in the UAE.
• The VAT incurred is non-recoverable under UAE VAT law (for example, VAT on personal vehicle or entertainment expenses).
• The business is based in a country that does not offer reciprocal VAT refunds to UAE companies.
• The business operates as a non-resident tour operator.

Countries with reciprocal VAT refund agreements

The UAE’s MOF has agreements with the following countries:

• Austria
• Bahrain
• Belgium
• Denmark
• Finland
• France
• Germany
• Iceland
• Isle of Man
• Korea
• Kuwait
• Lebanon
• Luxembourg
• Namibia
• Netherlands
• New Zealand
• Norway
• Oman
• Qatar
• Saudi Arabia
• South Africa
• Sweden
• Switzerland
• UK
• Zimbabwe

According to the FTA, if your country is not on this list or does not have a VAT system, you should contact your national Ministry of Finance, which may negotiate an agreement with the UAE.

When can you apply for a refund?

To streamline the process, VAT refund claims are made annually:

• Refund period: Each claim should cover a 12-month period (calendar year), with exceptions for businesses in non-implementing GCC states.
• Minimum claim amount: VAT claims must be at least Dh2,000.

Documents for VAT refund applications

When applying, you will need to provide:

• An original tax compliance certificate (in Arabic or English), attested by the UAE Embassy in your country.
• A declaration in Arabic or English stating the percentage of VAT recoverable.
• Tax invoices with a valid tax registration number and payment proof.
• Bank details (IBAN, bank name and branch, country, account number, and SWIFT.
• A copy of the authorised signatory's passport.
• Proof of the authorised signatory’s authority.

Invoices can be either original hard copies or system-generated copies, provided they include proof of payment. Alternatively, scanned copies can be emailed to ForeignBusiness@tax.gov.ae (20MB per email limit).

Applying for a VAT refund

There are two ways to apply for a VAT refund under the Business Visitor Refund Scheme:

1. Online application

Here is a brief breakdown of the process:

• Log into FTA’s e-Services platform - eservices.tax.gov.ae and login with a UAE Pass account or create an FTA account. To do so, you will be required to enter your email, full name and nationality and create a password.
• Once that is done you will have add yourself as a ‘taxable person account’.
• Next, on the dashboard, locate the VAT section and then select ‘Business Visitor Refunds’ application form for the recovery of VAT refund for foreign businesses.
• Fill out the application. You will be guided on each step and be informed about the supporting documents.
• Once all the relevant documents are received, FTA will process the refund request within four months from the date of receiving all required original documents.

Submitting required documents

• For hard copy submissions - Mail them to Federal Tax Authority, P.O. Box 2440 – Dubai
• For soft copy submissions - Email scanned documents to ForeignBusiness@tax.gov.ae. Be sure to include your company name and claim reference in the email subject line.

2. Using a UAE tax specialist:

This option is more convenient but comes with a fee. A specialist can handle everything for you, ensuring all requirements are met and avoiding potential delays. Consultants can help ensure that all necessary steps, like document attestation or submitting hard copies of receipts, are properly handled. You can find the list of registered tax agents here: https://tax.gov.ae/en/tax.support/tax.agents/registered.tax.agents.aspx

When should you submit your application?

Refund claims are made on an annual basis. Applications open on March 1 each year, covering expenses for the previous calendar year (for example, expenses from January 1 to December 31, 2024 can be claimed from March 1, 2025). Make sure to submit your claim by the final deadline of August 31 each year to ensure it is processed on time.