VAT REFUND IN THE UAE

Every company registered for taxes in the UAE is required to submit their tax return on time. If the input tax exceeds the output tax on the VAT return, a business in the UAE can request a VAT refund. The refund can be requested when filing the VAT return or afterwards. It takes the FTA up to 20 working days to review and process a VAT refund application after submission by the taxpayer. The company is informed by the FTA about their decision on approving or declining the claim. Handling the VAT refund process is a complicated job that needs specialists to verify files and submit the application to the Federal tax authority. 3A global assists businesses in filing VAT refund applications and ensuring adherence to regulations for the recovery of VAT refunds.

The process of getting back VAT paid on business expenses is known as Value Added Tax (VAT) refund. Businesses in the UAE can request a VAT refund if they meet specific conditions established by the FTA, after incurring VAT on their purchases and operational expenses. It is essential for businesses to comprehend the VAT refund process in order to effectively handle their finances and enhance cash flow.

VAT Refund for tourists

Tourists in the UAE can utilize the VAT refund scheme. The program enables eligible visitors to ask for reimbursements of the VAT paid on their purchases in the local area. Automated kiosks at various departure locations nationwide allow departing visitors to retrieve their VAT refunds. In the store, a tourist can ask for a tax-free transaction, available for purchases of at least AED 250.

The FTA and Planet worked together to create an automated VAT refund system, operated by Planet, to simplify the process for tourists. The visitor should make sure to get a paper tax invoice and tax-free tag from the retailer when buying in order to be eligible for a refund later.

Tourists can utilize the self-service kiosk at the departure point in UAE to begin validation of tax-free transactions and scan their passport. If inspection is necessary, they should show the tax-free tag, original tax invoice, and bought items at Planet’s validation desks.

VAT Health check In The UAE

Ever since VAT was introduced in the UAE in 2018, the federal tax authority has issued various VAT Compliance regulations and laws that have been revised and updated. A VAT health check in the UAE involves reviewing a company's VAT compliance and reporting procedures and processes. It's crucial to monitor the complex VAT system closely since the authorities are placing more emphasis on VAT regulations.

Ensuring compliance with VAT laws is essential for businesses to prevent penalties and uphold a solid financial position. A business can hire a professional service provider with VAT expertise to perform a VAT health check on their operations and ensure compliance with regulations.

We at Cornerstone will examine the company's financial records, assess its quarterly VAT filings, check VAT invoice presentation, and analyze input and output VAT computations. Following the results of the VAT health check, our VAT specialists will suggest enhancements to the company's VAT compliance and reporting system that guarantee the evaluation of the precision, comprehensiveness, and effectiveness of your VAT compliance processes, pinpointing any possible risks or areas needing enhancement.