Some countries try to implement incentive mechanism just to curtail the tourism cost, so that more and more tourists get attracted towards particular country. When it comes to UAE, the country pays special attention to the tourism of the country so the country has ‘Tourist Refund Scheme’ and that was designed by the VAT Executive of UAE. The article is going to discuss about VAT Form 201.
The scheme provides the facility to the overseas tourist to get the refund of the VAT they paid earlier; although, the tax refund is abided by certain conditions under the scheme.
Idea of Overseas Tourists
In order to learn about the tax refund system you need to understand who are considered as overseas tourists. The people who are not resident of UAE and the people who are not crew member of UAE airlines are considered as overseas people.
What are the Conditions that you need to know?
As it is said earlier, that, the people from different countries, will be eligible to get the refund of the VAT in UAE under the implemented scheme. However there are some conditions that you need to know to get your VAT return.
- There are some goods that are subjected to VAT return, will be sold to the people who are not the resident of UAE. And the supplier of the goods has to be the resident of UAE
- After the supply of the good the tourist needs to leave the country within 90 days. So you need to keep in mind that the time limit is 90 days from the date of purchase to get VAT refund in UAE
- The goods that are bought by an overseas tourist will go under verification within 90 days from the date of purchase. If the good is verified for the tax return then only the tourist will get the facility
How to file VAT return in UAE?
While filing VAT return in UAE you need form 201. In the form there is a box for VAT refunds for the overseas tourists under the scheme. The option will comes right under the VAT return on sales and other outputs. The latter is for the businesses that are registered under the VAT return scheme for the overseas tourists.
While filing the return the candidate needs to mention the value of the tax that is only provided to the overseas tourists under the implemented scheme in UAE. Once you mention the tax value the amount that appears in the box will be deducted; and you will get your tax refund on your purchase.
When it comes to the businesses that are not registered for the tax refund for the overseas tourists in UAE, the second will not be for them. So, you need to provide the nil value that will be auto populated.
Things to know about filing VAT return form
- While you are filing your VAT return form in UAE under the scheme, you need to provide all the amounts in AED or United Arab Emirates Dirhams.
- On the other hand, the tax return benefit is applicable for the registered business under the scheme
- For non-registered business under the same scheme, you need to enter the nil values
Now, you can claim the VAT return in UAE at the airport specifically at the kiosks. For the business that want to register under the scheme they need to provide all the details related to total VAT paid purchase. Along with that the details of supply need to be submitted. GCC Filings is the best place to go for clarity on VAT registration, return filing and information relating to all your queries.