VAT Refund Services
- MOE (Ministry Of Economy) Approved Auditors
VAT Refund Services in the UAE
Accurate claims, properly documented, for every category of refund the UAE VAT framework actually allows.
The UAE VAT framework provides refund mechanisms for several categories of claimants, including VAT-registered businesses, foreign companies, tourists, UAE nationals building new residences, and diplomatic bodies. Farahat & Co. guides businesses and individuals through every stage of the VAT refund process, ensuring claims are accurately prepared, properly documented, and submitted in line with FTA requirements.
- Registered FTA tax agent, managing refund applications directly through EmaraTax
- Full category coverage, from standard business refunds through to diplomatic and reciprocal foreign business claims
- Rejection-proofing built in, checking documentation and compliance status before submission, not after
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Our Specialists In VAT Refund Services
Dr. Imad Kutum
Participant - Audit
Dr. Imad Kutum
Participant - Audit
Dr. Imad Kutum
Participant - Audit
Dr. Imad Kutum
Participant - Audit
Dr. Imad Kutum
Participant - Audit
VAT Refunds for VAT-Registered Businesses
A VAT-registered business is entitled to claim a refund where input tax, VAT paid on purchases and expenses, exceeds output tax, VAT charged on sales, for a given tax period. This results in an excess refundable tax position that can be reclaimed from the FTA.
To claim a VAT refund as a taxable person:
Auditing is mandatory for a wide range of UAE businesses, depending on legal structure, licensing authority, and sector. This generally includes:
- Mandatory registration: required once your taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to exceed this amount within the next 30 days.
- Voluntary registration: available once taxable supplies, imports, or taxable expenses exceed AED 187,500 over the previous 12 months. This is particularly useful for startups and businesses with significant setup costs, since voluntary registration allows recovery of input VAT on expenses like office fit-out, equipment, and professional fees that would otherwise be unrecoverable.
- Below AED 187,500: businesses under this threshold are not required or eligible to register.
You’ll also need to confirm whether your supplies are taxable at the standard 5% rate, zero-rated, or exempt, since this affects both your registration position and how you handle VAT going forward.
VAT Refunds for Foreign Businesses
Foreign businesses that have incurred VAT on expenses in the UAE may be eligible to reclaim that VAT, even if they are not registered for VAT in the UAE, provided the following conditions are met:
In practical terms, this means a foreign company making even a single taxable sale in the UAE, where no UAE-based party is responsible for the VAT, may need to register immediately, with no AED 375,000 buffer to rely on. This is a common area of confusion, and non-resident businesses operating in or selling into the UAE should confirm their position early rather than assuming domestic thresholds apply to them.