The Federal Tax Authority of the United Arab Emirates updated their terms and conditions on VAT in September 2019. The full form of VAT is Value Added Tax which is charged by the government of UAE. If you frequently visit UAE for business purposes then you will have to pay VAT but you can apply for the VAT return. If you want to know How to VAT Refund for Business Visitors in UAE then you are in the right place because this article will discuss the terms and conditions, eligibility criteria, application process and all the other aspects of the VAT return Policy in UAE for business visitors.
The FTA (Federal Tax Authority) has updated a guide for the people who want to apply for TAX returns in Dubai which they pay because of business visits. In that guide, there will be information like the eligibility criteria of VAT return for business visitors, the information needed to submit the application form, deadlines of application form submission, the list of the countries that operate reciprocal agreements and eligible for the scheme.
Steps for VAT Refund for Business Visitors in UAE
If you are planning to submit the application form then you will have to know How to VAT Refund for Business Visitors in UAE.
Eligibility Criteria:
If you are applying for the VAT return then you must have an establishment which is fixed in the UAE or an Implementing State or if you have no place of establishment then you can apply. You must not be a person who pays tax in the UAE. If you are carrying business in the UAE then you will not be able to apply.
You can claim the VAT return for a period of 12 months. It can be different if you reside in the states of GCC. You can claim the VAT return for a minimum of AED 2,000 which means USD 544 approx.
You will have to provide proper information while filling out the application form. The information required to fill up the application form is the VAT registration certificate with the competent Tax Administration, the proof of incorporation in its country of establishment, if you don’t have a proper business activity in its country of establishment which is not eligible to get tax refund then you will have to provide a letter or any other evidence from your Tax administration which will be a proof of the tax input level. You will have to provide all the original copies of the tax invoices with the application. You will have to provide the proof of authority of the authorised signatory and a copy of the passport of the authorised signatory.
To fill up the application form, you will have to create an account on the website of the Federal Tax Authority. After submitting the application form, you will have to send the documents required like payment proof, establishment certificate, tax invoices and others by post within one month of submitting the application form.
It will take four months to process the application form and once your application is accepted then you will get the refund within 10 business days and the currency of the payment will be in AED (United Arab Emirates Dirham).