United Arab Emirates: The UAE Reveals the four conditions for foreign VAT recovery.

31 Janaury 2019
Uae News2

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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