VAT refund

VAT refunds are a way for foreign businesses or tourists to claim back the VAT paid on their purchases. If non-resident entities or tourists seek reimbursement of VAT on eligible goods and services, and aren't registered for VAT in the UAE or other jurisdictions, they can do so by meeting specific criteria.

Eligibility for VAT refunds requires the purchaser to be a non-resident, unregistered for VAT in the country of purchase, and the goods or services must have been intended for personal use or be integral for business operations. For tourists seeking a VAT refund, the minimum purchase threshold stands at AED 250, with a requirement that such goods are to be exported within 90 days after their purchase. The maximum allowable VAT refund for tourists caps at AED 35,000.
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Exploring your options

There are two options for dealing with any excess input VAT:

  • You opt for a VAT refund, thereby reclaiming the excess input VAT.
  • You do not choose an immediate refund, instead carrying forward the excess recoverable tax to future tax periods, utilising it to offset payable tax and penalties or reclaiming it later as a refund instead.

Either way, by entrusting our VAT consultants, we ensure that your business undergoes a hassle-free and compliant VAT refund journey.

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Essential documents for VAT refund services

To initiate a VAT refund, foreign entities and tourists must present specific documentation. The exact requirements may vary based on the nature of the claim and the specific governmental regulations.

However, typical documents you will need to have include:

  • Identification documents
  • Original tax invoices
  • Evidence of goods exported from the UAE
  • Receipts
  • Airline tickets or boarding passes
  • Trade license and commercial registration (if a business).
  • Bank account details

At Foster Chapman, we will ensure that all of your required documentation is organised, so you don’t have to worry.

What is the VAT refund process?

Navigating VAT refund procedures in the UAE demands assessing eligibility, document preparation, documentation submission and eventually receiving your refund.

VAT refunds in Oman

In Oman, upon filing VAT returns, if your VAT refund exceeds OMR 100, you can initiate a refund request following any necessary checks. The Tax Authority typically adjudicates within 30 days, with approved refunds received within an additional 15 days.
If your VAT refund is below OMR 100, it will be carried forward to subsequent tax periods. However, at the Tax Year’s culmination, you can still claim the refund, as long as you get the request done before the first tax period’s due date in the new Tax Year.
Remember, it’s imperative to file refund requests within five years from the relevant tax period’s end to ensure that it is still eligible.

VAT refunds across GCC Nations

Foreign businesses seeking VAT refunds in GCC states must evaluate their eligibility, before preparing the refund application. You must then ensure that any accompanied supporting documents are submitted alongside your application within the required deadline.
Filing formal applications for VAT refunds throughout the year, even if your tax authorities have not yet set up a clear VAT refund process, is still essential to retain entitlement of your money.

Claim your VAT refund with Foster Chapman

Partnering with Foster Chapman will give you access to efficient VAT services and will ensure that you remain assured through every stage of the process.

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