Innovate Accounting offers dependable VAT refund services , facilitating swift VAT refund claims for both businesses and tourists. VAT refunds can be claimed when the input VAT exceeds the output VAT. In essence, output tax pertains to the tax levied on a business's sales, while input tax refers to the tax accrued on purchases, expenses, and imports made by businesses. We streamline the VAT refund process to ensure prompt and efficient refunds for our clients, aiding them in maximizing their VAT recovery.
VAT Refund
VAT refund is the process through which businesses or tourists can reclaim the VAT paid on goods and services purchased within the country. Foreign businesses or tourists not registered for VAT in the UAE or other countries can claim a refund of the VAT paid on eligible goods and services, provided they meet specific conditions and adhere to prescribed procedures.
To qualify for a VAT refund, the purchase must be made by a non-resident not registered for VAT in the UAE or other countries, and the goods or services must be intended for personal use or the core operations of the business.
For tourists to be eligible for a VAT refund, the minimum purchase required is AED 250, and the goods must be exported within 90 days of purchase. The maximum VAT refund amount a tourist can apply for is AED 35,000.
Options for VAT Refund
The taxpayer has the following two options in treating the excess input VAT commonly known as VAT refund:
- The taxpayer will be eligible to request a VAT refund
- If he does not wish to request a refund of the excess input VAT, the excess recoverable tax will be carried forward to subsequent tax periods and can be used to offset against the payable tax and/or penalties, or he can apply for a refund later at any point in time.
Document Required for VAT Refund Services
To claim a VAT refund through VAT refund services, foreign businesses and tourists are required to have certain documents. The documents required may vary depending on the nature of the claim and the specific requirements of the government to process the refund. However, some common documents required for VAT refund services in UAE are:
- Original tax invoices
- Proof of export of goods from the UAE, such as shipping documents or boarding passes
- Original receipts or credit card slips
- Passport or other identification documents
- The boarding pass or airline ticket for tourists
- Trade license and commercial registration for businesses
- Bank account details for the refund transfer
Innovate Accounting has the most reliable VAT Consultants in UAE who can help you organize your document requirements and process VAT Refunds in an effective way possible.
