VAT News

UAE-Authorities release details of VAT refunds for overseas businesses

Where non-UAE businesses undertake business within the UAE, it is likely that local VAT will be incurred on purchases. If the non-UAE businesses is not required to be UAE VAT registered, other avenues for VAT recovery must be explored.

The FTA has now released details of the recovery mechanism, it is is based upon the '13th directive' that is seen in the EU. To make a claim for VAT, the non-UAE business must not:

-have a place of establishment or fixed establishment in the UAE or an Implementing (GCC) State; or

-be VAT registered, or be required to be VAT registered in UAE

The foreign business must:

-be registered as an establishment with a competent authority in the jurisdiction in which is established; and

-be from a country that provides refunds of VAT to UAE entities in similar circumstances

Claims can be made on an annual basis, with the first claims to be submitted in 2019. No details have been released regarding submission deadlines.

The minimum claim amount is AED2,000, and claims must be submitted electronically using the prescribed FTA form.

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