In 2026, the UAE’s tax landscape has entered a period of strict enforcement. Under Federal Decree-Law No. (16) and No. (17) of 2025, which took effect on January 1, 2026, the Federal Tax Authority (FTA) has introduced a hard 5-year statute of limitations on VAT refund claims.

For businesses and individuals with unclaimed tax credits dating back to the early years of VAT (2018–2020), the clock is officially ticking. This comprehensive guide, prepared by the experts at Risians Accounting & Tax Consultant, provides the roadmap you need to secure your refund before these credits are permanently forfeited.

The 2026 Shift: Why This is a “Use It or Lose It” Year

Since VAT was introduced in 2018, many businesses have treated excess input tax as a permanent asset on their balance sheets, carrying it forward indefinitely. The 2026 amendments have fundamentally changed this mindset.

• The New 5-Year Rule: Taxpayers now have exactly five years from the end of the tax period in which a credit arose to either utilize it against tax liabilities or request a formal refund.
• The Transitional Grace Period: Recognizing that many businesses have legacy credits, the law provides a final window until December 31, 2026. If you have credits from 2018, 2019, or 2020, this is your last chance to claim them.
• Permanent Expiry: If a refund request is not submitted within these timelines, your right to that money expires permanently. The FTA will no longer allow these balances to offset future tax or be paid out.

Step-by-Step Guide to Claiming Your Refund in 2026

Successfully reclaiming years of VAT requires more than just clicking a button on the EmaraTax portal. It requires a meticulous, audit-ready approach.

1. The “Legacy Audit” and Aging Analysis

Before filing, you must categorize your credits by age.

• Reconcile EmaraTax with Books: Ensure your portal balance matches your internal ledgers.
• Identify Expiry Dates: Create a schedule showing when each “chunk” of credit was generated.
  • Example: A credit from the quarter ending March 2021 must be claimed by March 31, 2026.
  • Example: All credits from 2018–2020 must be claimed by December 31, 2026.

2. Compiling the Evidence File

In 2026, the FTA is increasingly skeptical of old claims. Your application should be supported by a digital folder containing:

• Top 5 Invoices: For every period included in the claim, have the five largest purchase invoices ready.
• Proof of Payment: Bank transfer copies or stamped receipts. The FTA now frequently checks if the VAT was actually paid to the supplier before refunding it to you.
• Customs Declarations: If your credit arises from zero-rated exports, ensure your “Exit/Entry” certificates are linked and valid.

3. Verification of Supplier Legitimacy

One of the most critical 2026 amendments allows the FTA to deny input tax recovery if a supply is linked to tax evasion—even if you weren’t the one evading.

• The “Should Have Known” Clause: If the FTA determines you failed to conduct due diligence on a supplier, they can reject your refund.
• Action: Use the FTA’s TRN verification tool for all high-value historical invoices.

4. Submitting the VAT311 Form

• Log into the EmaraTax portal.
• Navigate to VAT -> VAT Refunds -> VAT311 Request.
• Bank Account Letter: Ensure your IBAN validation letter is recent (less than 6 months old) and clearly displays the name registered with the FTA.

Special Timelines & Exceptions

The 2026 law does provide some “safety valves” for complex situations:

• FTA Decision Exception: If a credit arises from a specific FTA decision (like a successful appeal) after the 5-year window has closed, you have one year from the decision date to claim the refund.
• The 90-Day Rule: If a credit arises in the final 90 days of the 5-year period, you are granted a 90-day extension to file the request.

The Hidden Risks of 2026 Refund Claims

The “Extended Audit” Window

Under Article 46 of the Tax Procedures Law, if you submit a refund claim in the 5th (final) year of its eligibility, the FTA is automatically granted an additional 2 years to audit that claim. This means filing a “last-minute” refund could keep your books open for scrutiny until 2028.

Voluntary Disclosures (VDs)

If you discover an error while preparing your 2026 refund, you may need to file a voluntary disclosure. Under the new rules, you can submit a VD for refund-related errors within two years of the refund application, provided the FTA has not yet issued a decision.

Checklist for Businesses in 2026

Task	Deadline	Status
Reclaim 2018–2020 VAT Credits	Dec 31, 2026	Critical
Verify Bank IBAN letter on EmaraTax	Before Submission	Mandatory
Perform TRN Verification on top 10 vendors	Immediate	Recommended
Submit VAT311 for 2021 Q1 Credits	March 31, 2026	Urgent

Why Professional Assistance is Essential

The FTA’s “zero-tolerance” approach to documentation in 2026 means that a single non-compliant invoice can lead to the rejection of an entire multi-million dirham claim.

Risians Accounting provides the specialized oversight needed for these high-stakes filings:

• Pre-Assessment: We identify which credits are at risk of expiry and prioritize them.
• Quality Control: We audit your “Evidence File” before the FTA sees it, ensuring every invoice meets 2026 standards.
• Communication: We handle all “Clarification Requests” from the FTA, reducing your administrative burden.

Your tax credits are “wasting assets”—they lose value the longer you wait. Contact Risians Accounting today to secure your legacy VAT refund before the 2026 window slams shut.

Frequently Asked Questions (FAQ): UAE VAT Refund

1. What is the “5-year limit” on VAT refunds in the UAE?

Effective January 1, 2026, the UAE has enforced a strict statute of limitations. You must claim a refund or utilize excess input tax within five years from the end of the tax period in which it was incurred. After this window, the credit is permanently forfeited and cannot be used to offset future tax or penalties.

2. I have unclaimed VAT credits from 2018 or 2019. Can I still get my money back?

Yes, but the window is closing. Under the 2026 Transitional Relief, any legacy credits (from 2018–2020) that have technically already expired are granted a final grace period. You must submit a formal VAT311 refund request by December 31, 2026, or these credits will be removed from your EmaraTax portal forever.

3. Does filing a refund claim in the 5th year increase my risk of an audit?

Yes. Under Article 46 of the Tax Procedures Law, if you submit a refund request in the fifth year of a credit’s eligibility, the FTA is automatically granted an additional 2 years to audit that claim. To avoid keeping your books open until 2028, it is best to file well before the 5th-year deadline.

4. Can the FTA reject my refund if my supplier committed tax evasion?

In 2026, the FTA has enhanced powers to deny input tax recovery. If a transaction is linked to tax evasion—even if you are innocent—your claim can be rejected if the FTA determines you “should have known” about the supplier’s non-compliance. Risians Accounting conducts thorough TRN verification to protect your claims from this risk.

5. Is “self-invoicing” still required for imports in 2026?

No. A major 2026 simplification is the removal of mandatory self-invoicing for Reverse Charge Mechanism (RCM) transactions. You no longer need to generate a separate internal document; however, you must still maintain the original supplier invoice and proof of payment as evidence for your refund.

6. Why should I use Risians Accounting instead of filing the refund myself?

Filing for a 5-year-old refund is technically high-risk. The FTA’s “zero-tolerance” policy in 2026 means a single missing bank receipt or an incorrectly formatted invoice can lead to a rejection. Risians Accounting provides a pre-audit health check, ensuring your “Evidence File” is 100% compliant before the FTA reviews it.

7. What if my 2018–2020 tax records are messy or incomplete?

This is a common hurdle for many UAE businesses. Our team specializes in backlog reconciliation. We can reconstruct your tax ledgers using bank statements and supplier confirmations, helping you salvage your VAT credits before the December 31, 2026 deadline.

8. How long does the FTA take to process a 2026 refund claim?

While the FTA typically aims for 20 business days, legacy claims or high-value requests often trigger “Clarification Requests.” As your FTA-registered tax agent, Risians Accounting manages all correspondence directly with the authority, significantly speeding up the time it takes to get the cash back into your business.