Did you know that you can receive a reimbursement for the Value Added Tax (VAT) paid on goods purchased in the UAE? Essentially, when visiting the United Arab Emirates, you can legally shop tax-free, making it advantageous for luxury purchases. Let’s delve into the detailed process of VAT refund for both foreign businesses and tourists in the UAE.
Foreign businesses that have incurred VAT on purchases made in the UAE may qualify for a VAT refund. Here’s a step-by-step guide:
1. Eligibility Criteria: Foreign businesses must meet certain criteria, such as not having a place of establishment or fixed establishment in the UAE, and not being registered or required to be registered for VAT in the UAE.
2. Document Preservation: It’s essential for foreign businesses to retain all original tax invoices and import/export documentation related to goods and services bought in the UAE.
3. Refund Application Submission: Foreign businesses must submit a VAT refund application to the Federal Tax Authority (FTA) within the specified timeframe, typically six months from the end of the calendar year in which the expenses were incurred.
4. Verification and Approval: The FTA will review the refund application and may request additional documentation or information. If the application meets the criteria, the FTA will approve the refund.
5. Receipt of Refund: The approved refund will be disbursed to the foreign business via a bank transfer to the designated bank account.
It’s important to recognize that the VAT refund process can be intricate and time-consuming. Therefore, it’s advisable to seek assistance from a tax agent or accountant proficient in VAT refund procedures in the UAE.
UAE VAT Refund for International Businesses
VAT refund for foreign businesses in the UAE is accessible to companies that have registered with the relevant agency in their home country. If your company accrues significant Value Added Tax (VAT) expenses during operations in the United Arab Emirates (UAE), you can seek a VAT refund by adhering to the appropriate filing protocol.
Businesses eligible for VAT refunds should meet the following criteria:
1. Absence of Establishment in UAE: They should not have a place of business or a fixed establishment in the United Arab Emirates or another State that has implemented VAT.
2. Registration: They must be registered as an establishment with the appropriate government in the jurisdiction where they are established.
3. Ideally Non-Taxable: Ideally, they should not be subject to taxation.
4. Reciprocal Arrangements: They should be from a country that reimburses UAE firms for VAT under identical conditions.
Businesses ineligible for VAT refunds include those:
1. Incurring Non-Recoverable Input Tax: Input tax incurred that is not recoverable through VAT registration in the UAE, such as entertainment expenditures.
2. Making Supplies in the UAE: Businesses making supplies in the UAE, unless the recipient is obligated to account for the VAT owed.
3. Not from Qualified Nations: Businesses not from one of the FTA’s lists of qualified nations.
4. Operating Tours for Non-Residents: Businesses that operate tours exclusively for non-residents.
How to Apply for a UAE Business VAT Refund

To apply for a VAT refund for your business in the UAE, follow these steps:
1. Ensure Timely Filing: File a VAT claim within one year from the end of the tax period in which the refund becomes due. However, businesses based in other Gulf Cooperation Council (GCC) nations may have different deadlines.
2. Minimum Refund Amount: Your VAT refund application must be worth at least AED 2,000 to qualify.
Gather Required Documents: You’ll need the following documents:
– Valid tax invoices with a current Tax Registration Number (TRN) as proof of payment. Ensure these invoices are endorsed by the UAE Embassy in the country where your company is registered.
– A copy of a tax compliance document issued by the country where your company is headquartered, verifying your TRN. Acceptable documents include a certificate of business activity or business status.
– A photocopy of your passport, categorized by the Federal Tax Authority of the UAE as a “passport of an authorized signatory”. Additionally, provide evidence of your authority to sign.
3. Submission Process: Utilize the Emara Tax platform to submit your VAT refund application electronically. Ensure you upload copies of all required documents as per the platform’s guidelines.
By following these steps and submitting your application through the Emara Tax platform with all necessary documents, you can initiate the process of obtaining a VAT refund for your business in the UAE.
UAE VAT Refund for Tourists
Tourists visiting the UAE can reclaim VAT paid on their purchases upon departing through Abu Dhabi International Airport, as per the announcement made by the UAE Federal Tax Authority on November 18, 2018.
Under the current regulations, GCC nationals are also eligible for Tax-Free Shopping, which is accessible to all non-residents of the UAE.
Tax-free shopping in the UAE involves purchasing items for export, subject to specified limits and conditions. Customers who authenticate their purchases in accordance with regional regulations may qualify for refunds on certain goods.
Procedure for Tourist VAT Refund
To facilitate a VAT refund for tourists, the process typically involves the following steps:
1. Proof of Identity: The tourist must present a valid passport as proof of identity.
2. Recording Tourist Data: The shop employee utilizes the system to record the tourist’s information.
3. Tax-Free Sticker: The shop employee affixes a Tax-Free sticker on the back of the sales receipt.
4. Authentication at Airport: Upon departure, the tourist must authenticate the purchase at the airport, where a Tax-Free digital form will be prepared.
Duration for Refund Validation:
You have a 90-day window from the purchase date to validate your tax-free sticker. For instance, if a form was issued on January 1, it remains valid until April 1. Failure to validate within this period results in the expiration of the Tax-Free tag, rendering you ineligible for VAT refund.
Claiming the Refund:
Upon arrival at the airport, the traveler carries the purchased items and receipt and proceeds to a validation station. Following validation, the traveler selects a refund method. It’s worth noting that a secondary validation check may be required, and goods might need to be presented for examination.
Refund Process – Cash:
Each tourist can receive a maximum cash refund of 10,000 AED. Amounts exceeding this limit must be paid via credit or debit card.
How Unicorn Global Solutions can Help
Unicorn Global Solutions specializes in offering comprehensive assistance to businesses seeking VAT refund in the UAE. Our expert team is well-versed in the intricate details of VAT regulations, ensuring that our clients navigate the refund process with ease and confidence. From providing expert guidance on eligibility criteria and documentation requirements to offering timely submission assistance, we streamline the entire process for our clients.
Our meticulous approach ensures compliance with all relevant VAT regulations, minimizing the risk of errors or omissions that could delay or jeopardize the refund. With Unicorn Global Solutions, businesses can rely on dedicated support and expertise to maximize their refund potential and achieve timely reimbursement. For more details Text us on whatsApp or call us today .