A VAT refund arises when a UAE VAT-registered business has paid more input VAT on purchases than it has collected as output VAT on sales. The excess is claimed back from the FTA.
Businesses making predominantly zero-rated supplies (exporters), businesses in a period of high capital expenditure, newly established businesses incurring setup costs before revenue, and businesses with seasonal patterns where costs precede income.
A refund is requested through EmaraTax when filing the VAT return. The FTA reviews the claim and may request supporting documentation. Refunds are typically processed within 20 business days when records are in order.
Large or unusual refund claims attract FTA scrutiny. Clean, reconciled bookkeeping records and well-organised invoices are essential for a smooth refund process.
Finanshels identifies refund positions early, prepares supporting documentation, and manages the FTA submission and follow-up. See our VAT filing service and VAT consultancy.
