All the business registered for VAT can claim for VAT refund from Federal Tax Authority, if input VAT amount is higher than output VAT, then the excess balance will be refundable, (i.e., if suppose a business had more expenses in certain tax period and lesser sales this would result in excess balance that can be claimed for refund from FTA)
Once you make a claim for a refund of excess refundable tax, the FTA will within 20 business days of an application being submitted, review and notify you if it is rejected or accepted. If accepted refund can be claimed.
How to claim for refund through FTA portal?
Login to FTA E-service portal and access the refund form and you go to ‘VAT’ tab and then to the ‘VAT311-VAT refunds’ tab, under that click on ‘Request VAT refund’ box and access the form by clicking on’VAT311-new tax refund’ button.
What details to be provided to VAT refund form?
- Basic information
- TRN number
- Legal name of the entity/company
- About the refund
- Total amount excess refundable tax in AED: Excess refundable tax= refund-penalties.
- The amount you wish to have refund in AED: the amount you enter here must be equal or less than the amount of excess refundable tax
- Remaining amount of eligible excess refundable tax: may apply for in the future
- Late registration penalty amount:
- if the company is not charged for the penalties, then the field will show zero
- If the company had charged penalty and already paid, then the field show zero
- If not yet paid by the company it will show penalty for late registration AED 10,000
- After deduction of penalty the refund amount is negative you cannot get VAT refund but still you claim for refund FTA will reject the form
- If after deductions of penalty the refund amount is positive then the company can claim for VAT refund
- IBAN validation letter
- Bank account validation letter: this letter must be issued and stamped by your bank and includes details of account holder details (name must be same as person’s name who is registered with FTA)
- Bank name & bank address
- SWIFT/BIC and IBAN
- Authorized signatory :Name of the authorized person in English and Arabic
- Declaration :One must read carefully and tick ‘Yes’ to agree to the declaration before submitting the form.