Refunds

VAT Refund from FTA is generally claimed in below cases:

  1. Excess VAT is paid than required by Law or Regulations.
  2. Input tax paid to vendors is more than output tax collected from customers.
  3. Entity is involved in Exports or other zero-rated supplies.
  4. Establishment of new residences by UAE Nationals.

Forms to claim VAT Refunds are stated below:

A) Voluntary disclosure

For Tax Groups a Voluntary Disclosure can be submitted by the Representative member of the Tax Group. Other members of the Tax Group can View the Voluntary Disclosures.

If you are the representative member of a Tax Group, then a Voluntary Disclosure can be submitted against a VAT return that you have already submitted to the FTA or an Acknowledged Voluntary Disclosure or against a Tax Assessment that the FTA has sent to you.

Voluntary disclosures are to be submitted in the below scenarios:

  1. If you become aware that a Tax Return or Refund application submitted by you to the FTA or a Tax Assessment sent to you by the FTA is incorrect, which resulted in a calculation of the Payable Tax according to the Tax Law being less (in-case of Tax Return or Assessment) or more (in-case of Refund application) than it should have been, you must submit a Voluntary Disclosure to correct such error within 20 business days from the date of becoming aware of the error. Note that you are not required to submit a Voluntary Disclosure for the underpaid tax if the amount of the Payable Tax is not more than AED 10,000 as long as the person is able to correct the error in the Tax Return for the tax period in which the error has been discovered.
  2. In both of the above cases, if the tax liability or refund amount is favorable in your case then you may submit a Voluntary Disclosure to correct such error.

Voluntary Disclosure for Tax Groups

For Tax Groups a Voluntary Disclosure can be submitted by the Representative member of the Tax Group. Other members of the Tax Group can View the Voluntary Disclosures.

If you are the representative member of a Tax Group, then a Voluntary Disclosure can be submitted against a VAT return that you have already submitted to the FTA or an Acknowledged Voluntary Disclosure or against a Tax Assessment that the FTA has sent to you.

B) Re-consideration application for waiver of VAT related fines

Through this application the FTA reconsiders a decision of penalty imposed by the FTA in connection with the applicant. This application is also used to ask the Federal Tax Authority (FTA) to provide technical Clarifications on matters of uncertainty regarding the laws, executive regulations and guides/ information applicable and published by the FTA.

The Reconsideration Form has to be filed within 40 days from the date of the FTA decision.

How we stand out as an Expert VAT Refund Filer

Our tax consultants have dealt with number of Voluntary Disclosures and Reconsideration Applications that have enabled our clients in getting their refunds, after complying with intricate procedural formalities that we deal with through our draft of technical arguments and presentation of pertinent matters.

Using our in-depth knowledge about VAT law & regulations and experience, we can play a pivotal role in claiming the VAT Refunds from FTA.