How to claim vat refund in Abu Dhabi?

• Foreign Businesses: Businesses can claim refunds annually by submitting a particular refund request form.
• UAE Nationals Building New Residences: Refunds are accessible through a special form, available for download from the FTA website.
• Tourists: They can claim refunds at designated airports or self-service kiosks upon departure.

VAT refund For Tourist

Eligibility Criteria for VAT Refund

Tourists must fulfil these requirements in order to be eligible for a VAT refund in the UAE:

• Visitors must not be UAE citizens. UAE nationals studying overseas may be subject to restrictions, however, GCC nationals who do not currently reside in the UAE are also eligible.
• Tourists must not be crew members on a plane or ship leaving an implementing state and must be at least eighteen years old.
• Purchases must be made from retailers enrolled in the “Tax Refund for Tourists Scheme.”
• At least AED 250 must be spent in total.
• Products/items must not be consumed, either fully or partially, within Abu Dhabi. Certain goods, like boats, motor vehicles, services, and aircraft, as well as products not in possession upon departure, are not included in the refund scheme.

Methods of Shopping Tax-Free

In Abu Dhabi, there are three ways to shop without paying taxes:

• The Paperless Method: Completely online, using email-based digital invoices. At the validation phase, paper tax bills are not necessary.
• The Snapshot Method: It involves taking a picture of the tax invoice and uploading it to the system. If verification fails, you have to solve the problem with the store before departure.
• The Tag Method: The invoice is attached to a tax-free tag (sticker) that connects it to your passport or GCC ID. The physical tax invoice must be provided at validation.

Steps to claim VAT refund for Tourists

• Look for the VAT Refund Desk or Kiosk: Seek out self-service kiosks or tax-free manned validation desks. Typically, these are found in departure areas.
• Prepare your documents: Prepare the tax invoices from the participating shops, your passport and tax refund receipts for presentation.
• Verify your purchases: At the desk or kiosk, provide all required paperwork and, if requested, your purchased items for inspection by the staff. They will verify your tax-free purchases with a stamp or electronic verification.
• Choose your refund method: Decide if you want a VAT refund in cash, through a credit/debit card or through an application.
• Get your reimbursement: Following clearance, a small processing fee (about AED 4.80 per tax-free tag) will be deducted from your VAT refund.

The maximum cash VAT refund per tourist is AED 35,000. To process the VAT refund, you must present a valid credit or debit card if the return exceeds AED 35,000.

Select Your Refund Option

• Cash: After passport control, cash is instantly available at participating foreign exchange providers.
• Credit/Debit Card: Processing refunds can take up to nine days.
• Digital Wallets: These are the online options that are available for digital refunds.

VAT refund For Business Visitors

As a business visitor, you must fulfil certain requirements established by the Federal Tax Authority (FTA) of Abu Dhabi in order to be eligible for a VAT refund.

Eligibility Criteria For Vat Refund

• In accordance with GCC agreements, the foreign company is not permitted to have a physical or fixed establishment in the UAE or any state that has a VAT law in effect.
• The entity must not be classified as a taxable person in Abu Dhabi.
• The company must avoid engaging in ongoing or routine business activities in Abu Dhabi.
• The organization needs to be accepted by and registered as an establishment with the appropriate government in its nation of origin.

Steps to claim VAT refund for Foreign Businesses

You should follow the following steps to claim a VAT refund:

• Open the FTA e-Services Portal and log in: Enter your registered username and password to access the portal.
• Access the VAT Refund Form: To access the form, navigate to the “VAT” section, click “VAT Refunds,” and then pick “VAT Refund Request.”
• Fill out the refund form: Enter the necessary data precisely. Asterisk (*)-designated fields are required, and certain fields might be filled in automatically using information from your profile.
• Fill out the Form: Review and fill out the form. To prevent delays, make sure your bank account information is entered accurately.
• Get Confirmation and Processing Status: The VAT refund request will normally be processed by the FTA in 20 business days. Within five business days of approval, the refund amount will be credited.

VAT refund For UAE Nationals Building New Residences

VAT rebates on some building-related costs are available to UAE citizens who are building new homes. This refund covers VAT paid on products and services directly associated with building the new house, but it does not cover things like appliances and furniture.

The following list of incorporated goods eligible for a VAT refund:

• Centralized air conditioning and individual split AC units
• Fire detection systems, including alarms and smoke detectors
• Doors, flooring (except carpets), window frames, glazing, and concealed electrical wiring
• Bathroom fixtures, including sanitary ware and shower systems
• Kitchen installations, such as sinks, countertops, and built-in cabinets

Eligibility Criteria For Vat Refund

To be eligible for a refund, you need to fulfil the following requirements:

• Residential Use: The property must be used exclusively for your family’s residential needs.
• Personal Use: Commercial uses, such as renting or selling, are not permitted at the residence.
• Completion Certification: After construction is finished, you need a certificate of completion from the appropriate authorities
• VAT Invoices: If you want to claim any expenses, you must save the VAT invoices.

Steps to Get a VAT Refund for the Construction of a New Building

• Compile the necessary paperwork: Collect all invoices and supporting records for qualified costs, including construction supplies and contractor services (e.g., plumbing, engineering).
• Get the Refund Form:The VAT refund form for UAE citizens can be downloaded from the official FTA website.
• Fill out the form: Complete the form by providing detailed information about your qualified expenses in all required fields. All supporting documentation should be attached.
• Wait for FTA Review: After evaluating your application, the FTA will let you know if it was accepted or denied. Within five business days following approval, the refund amount will be refunded to your account.

Common Challenges and How to Overcome Them

While getting a VAT refund in Abu Dhabi is a simple process, certain common problems can occur:

Incomplete Documentation

Before submitting your application, make sure that all necessary paperwork, such as invoices and proof of payment, is in order.

Missed Deadlines

Applications for refunds must be filed by the deadline. Pay attention to due dates and submit your application as soon as you can.

Claims Denied

If your claim is denied, check over the FTA’s reason and make the required changes before reapplying.

Insufficient Knowledge of Procedures

Regularly visit the FTA website or speak with a tax professional to stay up to date on the most recent VAT refund requirements.

Final thoughts

The VAT refund scheme in the UAE significantly decreases costs for qualifying applicants, including foreign firms, UAE nationals building new homes, and tourists. By permitting VAT refunds for certain costs, the UAE encourages investment, new construction, and travel, which increases economic activity.

Maintain your receipts at all times, review the terms of your refund, and apply via the appropriate channels to guarantee a seamless transaction.