A Complete Guide for Businesses and Tourists

What is VAT and Why is it Relevant in the UAE?

Value Added Tax (VAT) is a consumption tax imposed on the value added to goods and services at each stage of production or distribution. VAT was introduced in the UAE in 2018 as part of the country’s effort to diversify its revenue sources and reduce reliance on oil income. The standard VAT rate in the UAE is 5%.

VAT affects both businesses and tourists in the UAE. Businesses are required to register for VAT, charge VAT on taxable supplies, and file VAT returns. On the other hand, tourists can potentially claim a VAT refund on eligible purchases made during their stay.

Eligible goods include most goods purchased from retail stores, but there are some exceptions, such as food, beverages, tobacco, and certain medicines.

To claim a VAT refund, tourists must follow these steps:

1. Collect the original tax invoices for all eligible goods purchased, as well as the Tax Free Shopping form from the participating retailers.
2. Validate the tax invoices and Tax-Free Shopping form at a Planet Tax-Free counter at any of the following locations:
   • Dubai Airport (DXB)
   • Abu Dhabi Airport (AUH)
   • Sharjah Airport (SHJ)
   • Al Batha Port (Abu Dhabi)
   • Zayed Port (Abu Dhabi)
   • Jebel Ali Port (Dubai)
3. Present the following documents to the Planet Tax-Free staff:
   • Valid passport
   • Boarding pass
   • Original tax invoices and Tax-Free Shopping form
4. Choose to receive your refund in cash or by credit card.

If you are claiming a VAT refund for business purposes, you must be registered for VAT in the UAE and have filed your VAT returns and paid your VAT liabilities on time. You must also have supporting documentation for your input tax claims.

To claim a VAT refund for business purposes, you must submit an online refund application to the Federal Tax Authority (FTA). The FTA will review the application and process the refund if it is approved.

VAT Refund for Tourists

Who Can Claim a VAT Refund?

Tourists visiting the UAE can claim a VAT refund on eligible purchases. To be eligible for a VAT refund, tourists typically need to meet the following criteria:

1. The tourist must be a non-resident of the UAE.
2. The purchases must be made from retailers participating in the Tourist VAT Refund Scheme.
3. The purchases must meet minimum spend requirements, which can vary.

How to Claim a VAT Refund as a Tourist

Tourists can claim a VAT refund by following these steps:

1. Shop at Participating Retailers: Make purchases from retailers that participate in the Tourist VAT Refund Scheme and ask for a tax invoice.
2. Request a Tax Invoice: Ensure you receive a valid tax invoice showing the VAT amount paid on your purchases.
3. Visit the Airport VAT Refund Counter: Before departing from the UAE, locate the VAT refund kiosks or counters at the airport.
4. Present Documents for Inspection: Present your tax invoices, passport, and purchased items for inspection at the VAT refund counter.
5. Receive VAT Refund: After verification, you’ll receive your VAT refund, either in cash or credited to your credit card.

VAT Refund for Businesses

When Can Businesses Claim a VAT Refund?

Businesses in the UAE can claim VAT refunds under specific circumstances. Common scenarios include:

1. Export of Goods and Services: Businesses that export goods or services outside the GCC countries may be eligible for a VAT refund.
2. Zero-Rated Supplies: Some supplies, such as certain international transportation services and exported goods, are zero-rated for VAT, allowing businesses to claim a refund on input VAT.

How to Claim a VAT Refund as a Business

Businesses can claim VAT refunds by following these general steps:

1. Maintain Accurate Records: Keep thorough records of VAT invoices and receipts, especially those related to zero-rated supplies or exports.
2. Submit the VAT Refund Application: Complete the VAT refund application form through the official portal provided by the tax authorities.
3. Attach Supporting Documents: Ensure all required documents, such as invoices and proof of exports, are attached to your refund application.
4. Wait for Review and Approval: The tax authorities will review your application and, if approved, process the VAT refund.
5. Receive VAT Refund: Once approved, you will receive the VAT refund.

Where to Claim VAT Refund in Dubai Airport

When at Dubai Airport, you can claim a VAT refund at dedicated VAT refund kiosks or counters located in the departure area. These counters are typically operated by tax refund companies authorized by the UAE tax authorities.

Can Claim UAE VAT Refund for All Purchase Bill

In general, you can claim a UAE VAT refund for eligible purchases made from retailers participating in the Tourist VAT Refund Scheme. Not all purchases are eligible, and there are criteria to be met, such as minimum spend requirements.

How to Claim Refund of VAT

To claim a refund of VAT, whether as a tourist or a business, you’ll typically need to follow a specific process outlined by the tax authorities in your jurisdiction. This process may involve submitting VAT refund applications, providing supporting documents, and meeting eligibility criteria.

How to Claim Refund VAT in Dubai

To claim a VAT refund in Dubai, follow the steps outlined in the Tourist VAT Refund Scheme or the VAT refund process for businesses, depending on your situation. This usually involves providing valid invoices and other necessary documentation.

How to Claim VAT Refund at Sharjah Airport

Sharjah Airport may have VAT refund counters or kiosks similar to Dubai Airport. Tourists departing from Sharjah Airport can follow a process similar to the one at Dubai Airport to claim their VAT refund.

How to Claim VAT Refund by FTA Site

The Federal Tax Authority (FTA) in the UAE typically provides an online portal where businesses can submit VAT refund applications. To claim a VAT refund through the FTA site, businesses must follow the instructions provided on the portal and provide all necessary documentation.

How to Claim VAT Refund for Company in UAE

Companies in the UAE can claim VAT refunds for specific scenarios, such as exporting goods or services or making zero-rated supplies. The process involves submitting VAT refund applications to the FTA and providing relevant documentation.

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How to Claim VAT Refund in UAE for Imports

Businesses in the UAE that import goods may be eligible to claim VAT refunds. The process generally involves maintaining records of import-related VAT and submitting refund applications to the FTA.

How to Claim VAT Refund in UAE in Portal

To claim a VAT refund in the UAE through the FTA portal, businesses must log in to their FTA accounts, complete the required forms, attach relevant documents, and submit the application online.

How to Claim VAT Refund on Export in UAE

Export-oriented businesses in the UAE can often claim VAT refunds on their exports. The process involves providing proof of export and submitting refund applications to the FTA.

Which Bill Should I Claim for VAT Refund

You should typically claim VAT refunds for bills that meet the eligibility criteria for the specific refund scheme you are using. For tourists, this often includes bills from participating retailers with valid tax invoices. For businesses, it depends on the nature of the business activities and the specific VAT regulations applicable to them. It’s essential to maintain accurate records and consult with tax authorities or experts to determine which bills are eligible for VAT refunds in your specific situation.

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