Understanding VAT in the UAE
If you run a company in the UAE—whether it’s a small trading shop in Deira or a larger supplier in Musaffah—you’re probably already dealing with VAT (Value Added Tax). Since it was introduced in 2018, VAT at 5% is charged on most goods and services. The good news? If you’re VAT-registered, you may be entitled to claim back the VAT you’ve paid on business-related expenses.
Let’s break it down into simple steps. No complicated language. Just clear guidance to help UAE businesses like yours get back the money you’re eligible for.
Are You Eligible to Claim a VAT Refund?
Before anything, check if your business is registered for VAT with the Federal Tax Authority (FTA). If you’re not, you can’t claim any VAT back. Most companies with taxable supplies of over AED 375,000 per year must register.
Once registered, you can claim input VAT—the tax paid on goods and services you purchase for your business—so long as:
- The purchase is for business use (not personal)
- You have a valid VAT invoice
- The supplier is also VAT-registered
Steps to Claim VAT Refund in UAE
1. Keep All Proper Records
Make sure every purchase invoice is organised, dated, and filed. The FTA requires supporting documents to approve your refund. You must keep your records for at least 5 years.
2. File Your VAT Return
You need to file VAT returns quarterly or monthly, depending on your tax period. This is done through the FTA’s online portal. It includes:
- Output VAT (VAT you’ve collected from customers)
- Input VAT (VAT you’ve paid to suppliers)
If your input VAT is more than output VAT, you’re due a refund.
3. Apply for the Refund
Once you’ve filed your return, you’ll see an option to apply for a refund. Fill in Form VAT311. It’s simple—just basic business details and refund amount.
4. Wait for the FTA to Process It
Normally, the FTA processes refund claims within 20 working days. You’ll receive an email once it’s approved, and the amount will be credited to your business account.
Why This Matters for UAE Shopkeepers and Suppliers
Let’s say you’re AHMAD AND KHADEEJA TRADING LLC in Deira or AL MAJARRAH EQUIPMENT CO in Musaffah. You’ve spent on stock, logistics, showroom setup—all taxed with VAT. If you don’t claim back what’s yours, that’s a lot of money left on the table.
It’s not just for big firms. Even a smaller shop in Sharjah like MIDLAND HARDWARE LLC could easily save thousands annually just by staying VAT-compliant and claiming refunds regularly.
Don’t Miss Out — Stay Informed with Gulfinquiries.com
Claiming VAT refunds is just one part of smart business in the UAE. At Gulfinquiries.com, we help hardware suppliers, traders, and shopkeepers connect with new buyers—and stay informed on crucial business matters like VAT, government policies, and offers.
