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What is VAT refund in UAE?

To begin with today’s guide, all businesses that are registered need to file a VAT return in the UAE. Here in, they need to include the details of the company sales, purchases output VAT, and input VAT paid throughout the tax period.

Under this concept, the output VAT is the fund that is collected on sales. On the other hand, the input VAT is the amount that is paid to the supplier in return for expenses/purchases. To gain a piece of better knowledge, several accountants in Dubai offer brilliant VAT services and guides for the same.

However, moving forward, the required input VAT amount will be entitled to adjust with the output VAT amount. Later, when the output VAT and input VAT are adjusted, two situations might arise. Simply put, adjusting the VATs lead to,

  • VAT Payable: In case the output VAT amount stays higher than the input VAT, the balance becomes the payable VAT amount that businesses need to pay to the FTA.
  • VAT Refundable: In case the output VAT is lower than the input VAT amount, the extra balance becomes the refundable VAT amount.

How to Consider VAT Refundable under The UAE VAT System?

The taxpayer has offered two options to treat the extra input VAT. Generally, it is known as the VAT refundable. The options include,

  • The taxpayer is allowed and has the eligibility to request a VAT refund
  • In case he/she is not willing to request the refund of the extra input VAT, the excess tax will be taken to the subsequent tax period. Later, it can be used to offset the payable tax and/or penalties. Or, the taxpayer can go for a refund later as per his wish.

Steps To Claim VAT Refund

In case you have an extra input VAT, you will come across an option stating a VAT return requesting a refund. For a better understanding, you may reach out to the leading VAT consultants in the town.

Initially, you will get an option asking if you wish to request a refund for the amount of extra recoverable tax. If you choose ‘yes’, you get a refund. If you choose no, the extra tax gets carried away to the subsequent tax periods. As discussed above, you can use it to offset against all payable tax or/and penalties.

Later when your VAT return is submitted, you need to fill in the VAT refund application form. Although you can get expert guidance from an accountant in Dubai, listed below are the steps to submit the VAT refund form ‘VAT311’.

  • Login to the FTA portal. Enter your username and password
  • Navigate through the page and go to the VAT tab. Next, click on the VAT refunds tab
  • Next, tap on the VAT refund request option
  • When you click the VAT refund request, you will see a refund form on your screen.
  • Next, fill in all the details that are suitable to the respective fields
  • Ensure filling the mandatory fields. These fields need to be filled mandatorily for completing the application of refund request.
  • Consequently, you will need an authorised signatory and Declaration. Several details including the authorised signatory will be auto-populated.

Next, tick the declaration before submitting the refund form

Once you have checked the form, click the submit button.

Having completed these steps, the refund form will be processed in accordance with the FTA procedure. After a few days, you will get an email notification from the FTA on the outcome of your refund application.

In case your claim gets verified and approved, your amount will be refunded. Although, you will gain a confirmation mail of the same. For a second check, you can log in to the ‘my payment tab’ and head into the transaction history to check the refunded amount.

You can Also Read: Acknowledge the advantages of accounting and bookkeeping


The entire concept of VAT in the UAE is taken quite seriously. In such a case, knowing the steps to a proper VAT refund in the UAE is important. Considering this, SA Consultants UAE is a one-stop platform that is dedicated to providing the best advice and solutions to VAT and accounting services. To sum up, when it comes to searching for the best VAT consultants in the UAE, SA Consultants is your answer.

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