VAT Refund Services –
Risians Accounting Risians Accounting offers verifiable and complete VAT refund services throughout the United Arab Emirates and the Kingdom of Saudi Arabia. We assist many businesses and travelers reclaim VAT within the shortest time, and in the most proper way, irrespective of the VAT being incurred on business acquisitions, or on personal purchases during a trip abroad. What is a VAT refund? A Vat refund is the amount a business or a non-resident is entitled to claim. Simply put, Tax Out = the amount of VAT a business sells. Tax In = the amount of VAT designated to purchases, expenses or imports. Every business is entitled to claim a refund when the amount of Input Tax exceeds Output Tax. In addition, non-resident customers are entitled to claim VAT refunds with respect to certain purchases, pending local regulations and limitations. Who are the eligible persons able to claim VAT refund? Businesses and other non-residents Any foreign business, or a local business holding excess input VAT, is able to claim a refund, if the business passes the certain criteria established by the tax authority, and the business provides the proper documentation. Visitors to a foreign country who do not possess VAT registration in the country of purchase are eligible to claim a refund used on personal purchases of goods and services, if such persons comply with the stipulations of the country of purchase, and the timeframe requirements.
Example (UAE): Individuals who spend over AED 300 on qualifying goods and subsequently export them within 90 days can request a VAT refund on such purchases. The minimum spend threshold usually sits at AED 250, while rules and limits on VAT refunds vary from country to country.
Like all countries have their own unique rules, there are still several common rules to VAT refunds.
Claiming VAT refunds can only be done by a non-resident (in a refund scenario) and/or by a business which has more input taxes than output taxes.
Goods must be exported outside of the country within a certain timeframe, which the UAE has 90 days on, whereby the rest of the world would have a longer export period.
Certain countries have an AED 250 threshold per individual for VAT chargeable export claims.
Claim limits on a per person/per year basis, for instance, would be like capping the maximum refundable amount at VAT AED 35,000.
Countries such as the UAE have set rules whereby changes or refunds must be claimed or requested within a particular time period. Most countries will cap this at 5 years after the ending period of which the refund period started.Treatment of VAT Refund Claims and Documentation (our Service Process)
• Apply for a refund of the excess VAT balance.
• Delay the balance to the future tax periods to be utilized against foreseeable VAT dues. The taxpayer has the option to apply for a refund at a later date.
• At Risians Accounting, we choose the best course of action for the client based on cashflow, the risk of being audited, and the overarching business strategy.
Documents that need to be presented for claiming VAT refund .
Cognitive steps to be taken depend on the specific nature of the transaction. The most common capturing documents are:
• Tax invoices that have been stamped with a VAT charge.
• Tax receipts for the export of goods (shipping documents, air waybills, export declarations) or passenger boarding.
• Original receipts and credit card vouchers.
• Non-Residents: Passport or National Identification.
• For Enterprises, a Business Establishment Permit and the Certificate of Registration.
Refund details for the Bank of Europe (account name, IBAN, SWIFT, in due course).
We take care of the refund process in its entirety in order to mitigate risks of delays and risks associated with compliance:
Handing this over to Risians Accounting eliminates the administration workload, and the possibility of getting a positive outcome is increased.Country-specific notes — UAE & the GCC
UAE
When filing VAT returns in the UAE, if you are eligible for a refund greater than or equal to OMR 100 you are entitled to submit a refund request upon completion of the necessary checks. The tax authority will make a decision within 30 days and if approved the amount will be refunded within the next 15 days. Amounts less than OMR 100 are often carried forward or claimed in future periods; however, you are free to claim them at any time. Most refund requests must be submitted within 5 years from the period in which the right to refund arose.
Foreign entities that incur VAT in the GCC VAT implementing countries need to determine their eligibility, obtain supporting documents, and submit formal refund requests within the stipulated time periods. As regional tax authorities are still updating their practices, a safe strategy of claiming and documenting all possible requests will be beneficial. Risians Accounting has cross-border partners and regional knowledge to assist in the management of refund claims from the Gulf Cooperation Council countries.
