Value Added Tax (VAT) has been imposed in UAE since 1st January 2018. It was a move to streamline financial resources to mitigate the gap between the rich and the poor. However, the imposition of the law has a considerable impact on all, even the visitors and tourists.

So, the state has decided to facilitate the people who visit UAE for a limited duration. The Federal Tax Authority (FTA) has recently announced a VAT refund for business visitors. It means that people who attended the UAE for business purposes in 2018 can seek reimbursement for VAT expenses. The decision is taken to maintain the status of a business-friendly country for the UAE.

So, if you are qualified for getting a VAT refund, you should not delay your application to request a minimum amount Dh 2000 in VAT. You should better look for the best VAT consultancy in Dubai to proceed with your application successfully.

In case that you have a plan to go UAE in the near future for a business trip, consider the guideline for VAT registration rules and regulations for refund.

Essential things to consider for VAT Refund

It is imperative to note that VAT refunds are for the people who don’t belong to any GCC state and also don’t have a place in UAE establishments. In this way, the people are not registered as tax-payers in the United Arab Emirates can apply for the return of VAT paid by them on different goods and services.

Let’s consider essential information that you are required to know while applying for a VAT refund or return for being a foreign visitor:

Eligibility Criterion

The most important question that you should never ignore is “who is eligible for getting a refund for VAT?” Any individual who is at least eighteen old and intended to leave UAE within 90 days after completing his business purpose is liable to apply for the VAT refund.

The Minimum Expense or Purchase

It is imperative to note that not everyone is eligible for applying refunds for VAT because there is a minimum limit of purchase to be done by the visitors. Unless the total tax-inclusive value is at least 2h 250, you cannot apply for a refund request.

Refund Centers for visitors

Many people may get confused about the receiving points or centers of their refunded money. So, you can get your money back at the airports of Dubai, Sharjah and Abu Dhabi.

Tax refundable transactions

The purchases that are made from the 18th of November, 2018 are considered eligible to be refunded. More than four thousand five hundred stores are enlisted for refundable taxes. It means that you can buy from any of the listed stores and then claim for refund.

Guidance and consultancy

There is no obligation from the state to apply through advisors. But, if you are purchasing millions, you should better acquire the services of the best VAT consultancy in Dubai to avoid mistakes in VAT filing.

Final Thought

Summing up, the decision of a tax refund is taken to facilitate the people for enjoying the amnesty of tax-free UAE. However, it is a two-way factor as it will strengthen the economy of the country.

But, you should take full advantage if you fall under the category of VAT refund. Don’t forget to consult with the best VAT advisors before applying for tax returns.

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