All the Tax registered companies must file tax return in UAE on respective period. A business can claim a VAT refund in the UAE if the input tax is greater than the output tax on the VAT return.Taxable person can initiate the refund request either at the time of filing the VAT return or after submitting it.After a taxpayer submits a VAT refund request, the FTA takes up to 20 working days from the day of submission to review and process the application. The Business receives the notification from the FTA regarding decision to accept or reject the claim.VAT refund process is a complex task and requires expert attention on verification of the files and submitting the application with Federal tax authority.3A global assist companies on submitting VAT refund application and ensure compliance in order to recover VAT refund.
Refund scheme for tourists
The VAT refund scheme for tourists is available in the UAE. The scheme allows eligible tourists to request refunds of VAT incurred on their local purchases. self-service kiosks at departure points across the country that enables departing tourists to claim back VAT themselves. At the store, a tourist can request for a tax-free purchase, which is valid on a minimum expenditure of AED 250.
The FTA and Planet, the exclusive operator of the tax refund system for tourists, collaborated to develop the automated Planet VAT refund system, which makes the VAT refund process easier. The tourist must ensure paper tax invoice and tax-free tag at the time of purchase from the retailer before plan to apply refund.
At the exit point tourist can use the self-service kiosk when departing from UAE by initiate the validation of the tax-free transactions and scanning copy of passport. if an inspection is required, present the tax-free tag, original tax invoice, and purchased goods at Planet’s validation desks.
VAT Health check
Since VAT implemented in UAE in 2018, The federal tax authority has announced several VAT Compliances and laws which have undergone changes and updates. A VAT health check in the UAE is an audit of a company’s VAT compliance and reporting procedures and processes. It is important to Keep an eye on challenging VAT regime, because the authority has been increasing focus on VAT compliances.
It is crucial for businesses to ensure compliance with the VAT laws to avoid penalties and maintain a strong financial standing. To conduct a VAT health check, a business can engage a professional service provider with expertise in VAT compliance and regulations.
We 3A global will review the business’s accounting data, evaluate its quarterly VAT returns, review VAT invoice formatting, and investigate input and output VAT calculations. Based on the findings of the VAT health check, our VAT experts will recommend improvements to the business’s VAT compliance and reporting procedure, which ensure to assess the accuracy, completeness, and efficiency of your VAT compliance procedures, identifying any potential risks or areas for improvement