Definition

A VAT Refund is when a business or individual claims back excess input VAT paid in the UAE. Refunds are processed by the FTA through the EmaraTax system.

Key points

• Businesses: Can apply if input VAT exceeds output VAT in a tax period.
• Tourists: Eligible through the Tourist Refund Scheme at designated airports and outlets.
• Government entities, foreign businesses, and international organizations may also claim refunds.
• Requires valid tax invoices and documentation.

Practical example

A company has AED 20,000 input VAT and AED 15,000 output VAT in a quarter. It applies for a refund of AED 5,000 via EmaraTax.

Why it matters

VAT refunds improve cash flow and ensure businesses don’t overpay taxes.