Many UAE business owners ask this simple question: “Can I actually claim back the VAT I’ve paid—and how hard is it?” The good news? You can claim VAT refunds in the UAE, and once you understand the steps, it’s not as tricky as it sounds.
Whether you run a small hardware shop, a trading company, or you’re a regular importer, knowing how to recover VAT can save you a good amount every year.
What is VAT refund, and who can claim it?
VAT (Value Added Tax) was introduced in the UAE in 2018 at 5%. While it applies to most goods and services, registered businesses can claim back the VAT they’ve paid on business-related expenses.
So, if you’re buying stock, paying for logistics, or importing goods from abroad, you can usually recover the VAT—provided your paperwork is in order.
This is especially helpful for companies trading fasteners, tools, and construction materials, where VAT bills can add up quickly.
Here’s how to claim your VAT refund step by step
- Get VAT registered
First things first—your business must be VAT registered with the Federal Tax Authority (FTA). If your taxable turnover is more than AED 375,000 annually, registration is mandatory. - Keep all invoices and receipts
Make sure every invoice has your business name and TRN (Tax Registration Number) clearly printed. No TRN? No refund. It’s as simple as that. - File your VAT returns on time
Every quarter, you must file a VAT return on the FTA portal. During this process, you report how much VAT you’ve collected and how much you’ve paid. If you’ve paid more VAT than you collected, you’re eligible for a refund. - Submit a refund request
After filing your return, you can click on the ‘VAT Refund Request’ option on your FTA dashboard. Fill in the form, submit it, and you’ll usually get your refund within 20 business days—if all is in order. - Watch for errors
The most common reason refunds get delayed is incorrect TRNs or missing invoices. Double-check everything before hitting submit.
What if you need help?
That’s where platforms like Gulfinquiries.com come in handy. We regularly connect UAE businesses with reliable tax consultants and VAT service providers who understand the system well. Whether you’re a hardware supplier in Sharjah or a trading company in Ajman Free Zone, you’ll find the right support here.
Don’t leave your money with the government!
Many small business owners in the UAE simply skip the VAT refund process because it seems complicated. But the truth is, every dirham counts—especially when you’re importing regularly or running tight margins.
With just a little effort and the right guidance, you can claim what’s rightfully yours and use that money to grow your business.
Final thought
Claiming VAT refunds isn’t just for big companies. Even small and mid-sized UAE businesses can benefit. Just follow the rules, keep your records tidy, and don’t be afraid to ask for expert help.
Visit Gulfinquiries.com today to connect with trusted VAT advisors and grow your business the smart way.
