VAT Reclaims for Business Visitors

UAE Business Visitors can now start securing VAT refunds. It is now confirmed by the Federal TAX Authority that those who are qualified to secure refunds apply for refunds for VAT charges incurred in the UAE by business visitors in 2018, a move that seeks to further cement the country’s position as a business-friendly destination.

In order to be eligible for securing tax refund:

• The business is resident in any GCC State that is not considered to be an Implementing State; or
• a foreign entity that carries on Business but: has no place of establishment or fixed establishment in the UAE or an Implementing State;
• is not a Taxable Person;
• is registered as an establishment with a competent authority in the jurisdiction in which is established; and
• is from a country that provides refunds of VAT to UAE entities in similar circumstances.

The period of each refund claim shall be 12 calendar months, hence the first application can only be made after the end of 2018. The minimum amount of each TAX claim that may be submitted under this VAT Refunds for Foreign Businesses Scheme shall be AED 2,000.