Claiming VAT refunds is not mandatory. No, we don’t mean that you let it go. In case you have the net amount due on the declared VAT return, you don’t have to necessarily go for the refund request option. You have other options too such as:

• You sure may claim the balance
• You can have the excess input VAT amount waived rather than claiming OR
• You may opt to have it left as a credit on your VAT account to be utilized to meet the future liabilities.

If you hope that your business would attract a future liability, offsetting the balance against the future payment due could be a great idea. However, you are free to proceed with the refund claim from the FTA as well. The formal request for a VAT refund must be made through the VAT refund application Form VAT311 available on the FTA portal. The process is stringent and requires trustworthy transactional evidence to meet the FTA’s criteria.

VAT Refund Filing: FTA’s Response Mechanism

VAT refund is claimed by taxpayers in UAE after filing their VAT return when they find that the input tax, they have paid is exceeding the output tax on a VAT return. A taxpayer has to wait for the FTA’s review and decisions on the refund request made for at least 20 business days. The taxpayer will be notified within this timeframe whether their VAT claim is approved or disapproved. If the process crosses the 20 days’ period, the FTA will let the taxpayer know about the extension of the deadline.

VAT Calculations: Errors

There are myriad rules and regulations in respect of VAT in the UAE, and it can be relatively simple for businesses to make honest VAT errors. No matter how simple the errors may seem, they can invite serious VAT penalties and business owners should do whatever they can to ensure they do not fall prey to these lures.

Structured to verify the credibility of your VAT returns, the FTA claims process requires valid supporting transactional VAT calculations to be submitted correctly in compliance with the legislation. It has to rate your supplies and any VAT recoveries on expenses meticulously. The type of your business will command the particular risk areas susceptible to VAT calculation mistakes. Despite everything, there are some examples to help your business as follows:

• Private expenses
• VAT at the mercy of blocked adjustments
• Non-taxable (or exempt) supplies and basis input VAT claims
• Errors in goods imported reverse charge claims
• Determination of export of goods and services
• Out-of-scope supplies considered

Adam Global: Your VAT Refund Filing Support in the UAE

VAT refund filing in Dubai, UAE is anything but easy! Do we need to mention why! Yes, you guessed it right – even a tiny error or little non-compliance can lead to a huge penalty. But to err is human but not professionals. So why not task a VAT specialist in UAE with your VAT refund filing and enjoy peace of mind with timely refunds. To ensure an error-free filing of VAT refunds and 100% VAT compliance, approach one of the best VAT consultants in UAE such as Adam Global (AG). Our qualified VAT advisors in Dubai, UAE are highly qualified to execute the UAE VAT return as well as refund filing process for businesses of all types and sizes. Be it advisory and support on VAT registration, VAT deregistration and VAT reconsideration or VAT training , AG provides a range of VAT-related services to help businesses steer clear of hefty penalties, stress and other VAT non-compliance consequences. Join us whether you want us to perform VAT activities on your behalf or you wish to make your employees VAT ready so, they are up to date with any updates in FTA rules and regulations and can efficiently file VAT returns and refund requests.