FTA VAT refunds for business visitors user guide
The FTA has published the full version of the VAT refunds for business visitors user guide. Foreign businesses will be eligible to apply for a refund if they meet the following conditions:
- They have no place of establishment or fixed establishment in the UAE or a recognized implementing state;
- They are not a taxable person in the UAE;
- They are registered as an establishment in the jurisdiction in which they are established; and
- They are from a country that has VAT and which provides VAT refunds to UAE entities in similar circumstances.
Businesses resident in any Gulf Cooperation Council (GCC) state that is not considered an implementing state may submit a VAT refund application to reclaim VAT incurred in the UAE under this scheme.
A refund will not be available if any of the following applies:
- The foreign business makes supplies in the UAE (unless the recipient must account for VAT under the reverse charge mechanism)
- The input tax in respect of any goods or services is blocked and would not be recoverable by a taxable person in the UAE
- The foreign business is a non-resident tour operator
The period of each refund claim will be a calendar year. For claims in respect to the 2018 calendar year, refund applications can be made from 1 April 2019. For subsequent years, refund applications can be made from 1 March of the following year.
The guide further states that the minimum claim amount for each VAT claim is AED 2,000, and that the FTA will issue more detailed guidance about the application process in the future. Please note that tax invoices must be retained and submitted as part of the application process.