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,
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,
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’.
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.
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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