What is a VAT Refund?

A VAT refund allows eligible individuals and businesses to reclaim excess input VAT paid on expenses that exceed their output VAT during a tax period. Instead of carrying forward the balance, you can request a refund from the Federal Tax Authority (FTA).

Who Can Claim a VAT Refund?

1. Businesses with recoverable input VAT greater than output VAT
2. Tourists under the UAE’s digital refund scheme
3. Foreign businesses not established in UAE
4. UAE nationals building new residences (special scheme)

Common Scenarios for Refund Eligibility

How to Apply for VAT Refund (For Businesses)

🔹 Step 1: File VAT Return

• Go to FTA Portal → File your VAT201 return
• If input VAT > output VAT, the system will show a refund option

🔹 Step 2: Access VAT Refund Form (VAT311)

• Go to your dashboard → Click “VAT Refunds”
• Choose “New Refund Request”
• Fill in the VAT311 form:
  • Refund amount
  • Tax period
  • Reason for refund
  • Bank account details (IBAN letter required)

🔹 Step 3: Submit & Wait for Approval

• FTA typically processes refunds within 20 business days
• You’ll receive status updates by email and in your portal

Required Documents

• VAT311 refund form
• Copy of VAT return for the period
• Valid bank account letter (with IBAN)
• Purchase/sales records (if requested by FTA)
• Customs documents for exporters
• Proof of zero-rated or qualifying supplies

VAT Refund for Tourists in UAE

Tourists can claim refunds on shopping through the Planet VAT Refund System by:

1. Requesting a digital refund tag at the retail store
2. Scanning passport and boarding pass at the airport kiosk
3. Getting refunded via cash or card

Refunds apply only at participating outlets and with a minimum spend of AED 250 per invoice.

VAT Refund for Foreign Businesses

Foreign businesses may apply under the Foreign Business Refund Scheme if:

• They are not established in the UAE
• They are VAT-registered in their home country
• Their country offers reciprocal VAT refunds to UAE companies

Applications must be submitted annually, within 6 months of year-end.

Common Reasons VAT Refunds Are Delayed or Rejected

• Missing or incorrect IBAN letter
• Incomplete VAT311 form
• Unjustified input VAT
• Supporting documents not provided
• FTA request for clarification not answered

Most Searched FAQs (2025)

Q: How long does it take to get a VAT refund?
A: Typically 20 business days after submission of VAT311 form.

Q: Is the VAT refund automatic?
A: No. You must manually apply using the VAT311 form.

Q: Can I apply for a refund every period?
A: Yes, if your input VAT consistently exceeds output VAT.

Q: Can I claim refund if I’ve filed incorrect VAT returns?
A: No, first file a Voluntary Disclosure, then apply for refund.

Conclusion

If you consistently pay more input VAT than output VAT, applying for a VAT refund can improve your business cash flow. Whether you’re a business, tourist, or foreign entity, the UAE offers multiple refund options—if you follow the correct process and submit accurate documentation.

Need Help With VAT Refund Application?

At Think Biz Management Consultancies, we help you:

• File VAT311 refund requests accurately
• Prepare and verify supporting documents
• Respond to FTA queries and follow up
• Handle refunds for exporters, startups, and VAT groups
• Maximize your VAT recovery while staying fully compliant

Contact us today for a free consultation.
Let our VAT experts handle your refund while you focus on your business growth.

Contact us today for a free consultation.

Contact number: ‪+971 50 983 0334‬

Email ID: info@alphabets.ae