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VAT Refund Claims Services in UAE

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    VAT Refund Claims Services in UAE

    As there has been Value Added Tax (VAT) in the UAE since 2018, corporate entities have had to charge VAT on their transactions as well as paying it on their goods and services. In some cases, however, it is suitable for companies to claim VAT refunds on the purchases which have identified for the business operations. VAT refunds management, on the one hand, is a very complicated and time-consuming process that requires correct and detailed documentation as well as good knowledge of Federal Tax Authority regulations. At Vigor Accounting & Taxation, we specialize in VAT refund claims services and offer businesses help in the facilitation of the VAT refund process and adherence to UAE tax laws.

    Understanding VAT Refunds in the UAE

    The VAT refunds enable the companies to get back the VAT that they have paid on business-related expenses. Such refunds can be obtained upon a situation in which VAT paid on taxable supplies exceeds the VAT to be collected, reclaims GST charged on the purchase of items used for the zero-rated or exempt activities by the businesses. The ability to claim back VAT is instrumental to the maintenance of stable cash flow and the implementation of efficient taxation systems.

    Businesses operating in various industries, including real estate, manufacturing, tourism, and logistics, can benefit from VAT refund claims. However, to successfully claim a VAT refund, businesses must comply with the strict documentation and reporting requirements set by the FTA.

    Common Challenges in VAT Refund Claims

    While the VAT refund process may seem straightforward, businesses often encounter several challenges, including

    • Incorrect or Incomplete

      Documentation: Missing or inaccurate documentation can result in delays or rejections of VAT refund claims. Businesses must ensure that all invoices and receipts meet FTA requirements.

    • Meeting FTA Deadlines

      VAT refund applications must be submitted within specific timeframes. Failure to meet these deadlines can lead to missed opportunities for refunds or penalties for late submissions.

    • Complex VAT Calculations

      Calculating the exact amount of VAT to be claimed can be complicated, especially for businesses involved in both taxable and exempt activities. Proper allocation of VAT expenses is crucial to avoid over- or under-claiming VAT.

    Eligibility for VAT Refunds in the UAE

    Not all businesses are eligible for VAT refunds, and the FTA has established clear criteria for VAT recovery. Key situations where VAT refunds can be claimed include

    01

    VAT Paid on Input Supplies
    Refund of VAT on goods and services bought by the firm can be claimed. It includes the costs incurred during the operation such as rent, utilities, supplies, and professional services. The VAT paid on these purchases, called input VAT, can be claimed as a refund, provided it exceeds output VAT (VAT levied on sales).

    02

    VAT Refund for UAE Nationals on New Residences
    UAE nationals constructing new residential properties are eligible for VAT refunds on certain construction-related expenses, such as materials and contractor fees.

    03

    VAT Refunds for Business Visitors
    Foreign companies can also take a refund if they have paid VAT on UAE established expenditures by submitting the VAT Refund for Business Visitors Scheme. This program assists international firms to return the VAT they spent on these costs: rents, show fees, and the legal or aviation sessions frequently.

    04

    Tourists VAT Refund Scheme
    Foreign tourists, who are exploring the UAE, can avail VAT refunds for taxable goods, which they have bought during their visit. The Tourist VAT Refund Scheme allows the retailers to refund the VAT to tourists at the declared refund points when they are leaving.

    05

    Export of Goods and Services
    The UAE has a zero-rated VAT policy for the export of goods and services. Businesses involved in export activities can claim refunds on VAT paid for inputs used in these activities, ensuring they remain tax-efficient.

    VAT Refund Claim Process in UAE

    The VAT refund claim process in the UAE involves several steps and requires businesses to adhere to specific FTA procedures. At Vigor Accounting & Taxation, we assist businesses in navigating this process seamlessly. The key steps involved are:

    01
    VAT Record-Keeping and Documentation
    Accurate record-keeping is critical for VAT refund claims. Businesses must maintain all invoices, receipts, and contracts related to VAT expenses. These records must clearly indicate the VAT amount paid and be organized for easy retrieval during the refund process.
    02
    VAT Refund Application Submission
    If your VAT returns are filed, businesses may receive VAT refund applications through the FTA portal. This payment sure to include all purchasable items – for instance, purchase invoices and proof of payment – as well as any contractual or binding agreements related to the VAT claim must be filed.
    03
    Receiving the VAT Refund
    The VAT refund will be processed only after the approval and the business will directly receive the refund amount into its designated bank account. In general, the FTA processes almost all of the VAT refunds within the set period, but sometimes there are everyday issues like unlawful or misprinted documentation.
    04
    VAT Return Filing
    Prior to demanding a refund, businesses have to lodge their filings of their VAT returns for the taxable periods through the FTA’s e-Services portal. VAT returns are the sales record that shows the VAT collected and VAT paid, covering also the sold items that attracted tax, the zero-rated items, and the total amount of exempt activities.
    05
    FTA Review and Approval
    The FTA reviews the VAT refund application and verifies the accuracy of the information provided. If the application meets the eligibility criteria and all required documents are submitted, the FTA will approve the refund request.

    How Vigor Accounting & Taxation Can Help

    At Vigor Accounting & Taxation, we provide full-fledged support to businesses in claiming VAT rebate so that they may extract the refund as the maximum and be in a good position to empower laws of FTA. The group of VAT professionals is completely familiar with tax regulations in the UAE thus delivering personalized services for all types and categories of the companies.

    Expert Assessment icon

    Expert VAT Advisory

    We give you expert help with your VAT eligibility. We make sure that your business can reclaim all the VAT it can. We advise on VAT planning, zero-rated supplies, and activities that are free from VAT.
    Accurate Documentation and Filing icon

    Accurate Documentation and Filing

    We help businesses keep accurate VAT records. We fill out all forms which are needed for getting back VAT. We gather invoices, receipts, and contracts based on FTA rules. We make sure they are set up neatly for fast submission.
    VAT Return Filing icon

    VAT Return Filing

    We handle the complete VAT return filing process, ensuring that your business reports its VAT obligations correctly and on time. We also calculate the net VAT payable or refundable and assist in filing VAT returns through the FTA portal.
    Application Submission icon

    Efficient Refund Application Submission

    We apply for VAT refunds. Our experts prepare the papers and file them online. We ensure that all required documents are included and that the application is error-free.
    FTA Compliance and Audit icon

    FTA Compliance and Audit Support

    We help you with FTA audits more. We respond to queries and requests. Also, ensure that VAT refunds go smoothly even during audits.

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