How To Claim VAT from the United Arab Emirates

Uae News6


Following the successful implementation of its VAT System, the Federal Tax Authority of the United Arab Emirate announced that foreign businesses who do not have a fixed establishment and who are not obliged to register for VAT may be eligible to obtain a refund of UAE VAT incurred in connection with their business activities outside of the UAE.

Application Date:

The effective date from which VAT refund applications are to be submitted is the 1st of April 2019. However, the procedural requirements for the submission of these claims are yet to be finalized it seems. VAT IT is closely monitoring the developments as they arise.

Can Your Country Claim from the UAE?

The approved list of countries with reciprocal arrangements has been provided by the UAE Ministry of Finance. We have provided the schedule below:

Approved List Uae 2

In the event that your country is not on the approved list or does not have a VAT system, you can contact the ministry of finance of your country, which would have to contact the UAE Ministry of Finance for inclusion on the approved list.

What Expenses Can your business claim VAT back on in the UAE

Uae Expense List Fa

Conditions for reclaiming VAT in the UAE:

The UAE’s Federal Tax Authority (FTA) has outlined four conditions for business attempting to reclaim VAT in the UAE. They are as follows:

  1. Must not have a place of establishment in the UAE, including Saudi Arabia and Bahrain.
  2. Must not be a taxable person in the UAE
  3. Must be registered as an establishment with a recognized body in their member state.
  4. Must be from a country that currently implements VAT and provides VAT refund to establishments in the UAE (reciprocity)

The FTA further noted the following as situations where VAT cannot be reclaimed:

  1. Where the foreign business makes supplies in the UAE (Unless required to under the reverse charge mechanism).
  2. Where the input tax of any goods or services is prohibited from recovery.
  3. Where the foreign business is a non-resident tour operator.

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