Deadline for foreign business VAT refund applications

12 July 2023 - The United Arab Emirates (UAE) provides a valuable opportunity for qualifying non-resident foreign businesses to maximize their Value Added Tax (VAT) refunds. To facilitate this process, the UAE has implemented the Business Visitor Refund scheme, allowing businesses to submit their claims within a specified timeframe.

From 1 March 2023 until 31 August 2023, non-resident businesses that have incurred expenses in the UAE during the calendar year 2022 can take advantage of this window to submit their VAT refund claims. As the deadline of 31 August 2023 approaches rapidly, it becomes crucial for eligible businesses to take immediate action.

To streamline the VAT refund process, businesses should focus on meeting the essential evidence requirements. These requirements include attestation, submitting hard copies, and providing proof of payment for the invoices included in the refund claim. Effective coordination with local embassies and vendors is crucial for collecting and submitting all the necessary documents within the specified timeframe.

How Deloitte can help

Deloitte offers a team of VAT specialists in the UAE who are experienced in preparing and submitting refund claims for clients. Our track record includes successfully navigating the approval process and helping businesses receive repayments of their VAT refunds from the FTA. This ensures that VAT does not become an irrecoverable cost of doing business in the UAE. Our services can guide businesses through the refund application process, providing advice and support to handle information requests, follow-up checks, and additional information requirements during the refund review process.

Additionally, we can conduct a thorough review of your supply chain structure to identify opportunities for minimizing the cost of irrecoverable UAE VAT in the future. This analysis can be especially valuable for businesses established in countries that are currently not recognized as eligible, as well as for those looking to enhance effective cash flow management while being eligible to submit claims.