As part of VAT in the UAE, the government has proposed various special refund schemes. This allows certain specified persons to receive a refund of their VAT paid on purchases in the UAE. In the UAE, it is not a taxable person.
Each of these systems has specific conditions that these individuals must meet in order to claim a VAT refund. Understand the special refund arrangements under VAT in the UAE.
1. New Homes Built by UAE Nationals
This applies to UAE nationals who own or acquire land in the UAE and build or commission their own homes on that land. Such UAE nationals are entitled to a refund of the VAT paid on the construction costs of their residences.
To be eligible for this program, you have to fulfill the following requirements:
The claim must relate to a newly constructed building used exclusively as a residence for the person or his or her family.
2. Under the Business Visitor
Corporate VAT Refund Scheme, a foreign company can apply for her VAT refund on his expenses incurred in the UAE. A foreign company is one that is registered with the competent authority of the country in which it is domiciled. The following are the conditions that must be met to qualify for this program:
The company must not be located in a state that has implemented her GCC VAT.
Taxes charged must not relate to goods or services for which taxes are not refundable.
The VAT refund system for businesses is explained in detail in “VAT refund system for businesses”.
3. Tourists
This refund policy applies to tourists visiting the UAE who are not residents of any of the GCC VAT countries. These tourists are entitled to a refund of their VAT paid on goods purchased during their visit to the UAE. The following are the conditions that must be met to qualify for this program:
Visitor must intend to leave her UAE within 90 days of purchase.
Visitors must not be crew members of flights or aircraft departing from countries where VAT is in place (i.e. currently the Kingdom of Saudi Arabia).
The tourist refund system is explained in detail in the article “Tourist refund system”.
4. Foreign Governments, Diplomatic Services and Missions, and Certain International Organizations
This rule applies to foreign governments, diplomatic services and missions, and certain international organizations. Under this scheme, these individuals will be reimbursed for taxes incurred when making purchases in the UAE. The specific conditions that must be met under this scheme are:
Products and services must be purchased for official use only.
A similar regime exists in the country where the relevant foreign government, international organization, diplomatic organization or mission is based or has its official headquarters, and similar UAE companies are exempted from any tax.
Therefore, the various refund schemes launched by the UAE government serve as an incentive for interested parties to make purchases in the UAE without charging VAT.
Claim must be made within six months of the project’s completion.
You can also register for VAT Registration on our website:
https://www.vat-registration-uae.com/
