VAT Refund Eligibility
Not every VAT-registered business can claim a refund — and some non-registered persons can. Eligibility depends on which refund route applies: excess recoverable input tax, the business visitor scheme, the new-residence scheme, or tourist refunds.
Dubai-based, FTA-aware VAT refund support for UAE businesses.
A VAT-registered business is eligible to request a refund whenever its recoverable input tax exceeds output tax for a period — common for exporters and businesses with heavy capital spend. Separate schemes exist for foreign businesses without a UAE establishment, UAE nationals building a new residence, and departing tourists. Each route has its own forms, thresholds and evidence rules.
The everyday refund arises inside the VAT return itself. When Box totals show recoverable input tax higher than output tax — because you export at 0%, bought major equipment, or stocked up ahead of sales — the balance is yours. You choose: carry it forward against future liabilities or request repayment via Form VAT311.
Refund claims fail on recoverability, not arithmetic. Input tax linked to exempt supplies, missing tax invoices, or blocked categories (certain entertainment, personal vehicles) is not recoverable — and claiming it invites penalties, not payment. An eligibility review before filing is cheaper than a rejected claim after.
The FTA runs dedicated refund schemes for persons who are not UAE VAT registrants at all. Each has its own eligibility gate and calendar.
Registrants whose recoverable input tax exceeds output tax in a period, plus non-registrants under special schemes: foreign business visitors, UAE nationals building new residences, and departing tourists.
Carrying forward is the default — the credit offsets future VAT. You request repayment only when you want the cash, typically for sustained refund positions.
Exports are zero-rated: you charge 0% on sales but pay 5% on local costs, so recoverable input tax routinely exceeds output tax.
No — entertainment for non-employees and certain other categories are blocked from recovery entirely and must be excluded from any claim.
AED 2,000 per claim, filed by foreign businesses with no UAE establishment or registration duty, generally on an annual cycle.
We will review your returns and input tax quality, confirm which refund route you qualify for, and tell you honestly whether to claim or carry forward.
