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FTA requirement for Bank account validation letter with VAT refund request

Posted on 29-Jul-2018 11:56 PM

The Federal Tax Authority (FTA) has published a new version of the VAT Refund User Guide, with addition of a requirement to submit a bank account validation letter when submitting a VAT refund request form.

Bank account details must be provided on the registration form; refund requests which do not provide these details will be rejected. Further, a bank account validation letter/certificate must be submitted to the FTA with the refund request. The letter must be issued and stamped by the taxable person’s bank and include the following details:

· Account holder name (which must match the taxable person’s name as it appears in its registration with the FTA)

· Bank’s name

· Bank’s address

· SWIFT/BIC

· IBAN

The letter or certificate will be uploaded as an attachment with the refund application.

The guide states that if the taxable person’s bank is international and does not have a correspondent bank in the UAE, it can take more than five business days for the refund payment, and the taxable person will incur the transfer fees charged by the bank.

The additional information is designed to improve the actual payment of refunds, and protect both the taxpayer and the FTA from where the refund could be paid to the wrong recipient.


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