VAT Refund Scheme on Goods & Services Linked With Expo 2020 Dubai
As the countdown for “World’s Greatest Show” begun, Dubai government has initiated several measures for providing the best of facilities to people visiting here from across the globe. In continuation, FTA (Federal Tax Authority) has rolled out notifications about conditions and procedures for grant of VAT refund to business officials in UAE for facilitating suitable foreign business visitors/ businesses to file VAT refund claims for expenses incurred in UAE. Here’s an overview of key points from the scheme
Eligibility for refunds claim:
- One having no place of establishment/ fixed establishment in UAE
- Not a taxpayer in UAE
- Not a business owner in UAE
- Conducting business outside UAE
- Must be registered with competent authority
Moreover there are certain exception to the eligibility where VAT Refund scheme would not be applicable:
- Foreign businesses providing supplies in UAE (excluding where recipient is liable to pay VAT under reverse charge)
- Input tax levied on the goods or services is not recoverable in UAE VAT legislation
- International business not providing VAT Refunds to UAE entities
- Overseas business is a non-resident or a foreign government entity
- Total amount of VAT Refund is below AED 2000
- Time of submission for VAT application Refunds
- Each Refund claim should be a different calendar year, for example: refund claim for year 2019 can be filed after 1 March 2020
- Businesses can file refund application 6 months from the date businesses can first make a claim
Furthermore if you have any doubt regarding VAT policies in UAE, better to consult any trusted vat consultants in Dubai for clarifications, since it’s will be helpful for the organizations in making accurate claims of ITC and VAT returns.