All business houses registered under the UAE VAT law needs to file VAT return as applicable, to assess the net VAT payable or refundable. The details that help us in ultimately figuring out the net VAT payable or refundable, are details of sales and purchases and the applicable input and output VAT.
Some Important Terminologies
- Input VAT: VAT payable to supplier on purchases. We get a credit of such VAT paid.
- Output VAT: VAT that is collected on sales and paid to the government after adjusting VAT input paid on purchases.
- VAT payable: If output VAT is more than input VAT.
- VAT refundable: If input VAT is more than output VAT.
Treatment of VAT Refundable
The taxpayer registered has one of the two options given below, to treat the VAT refundable.
- To request for refund of the same amount.
- To carry forward the amount to subsequent tax periods and claim later on against VAT output.
Steps to claim VAT refund
- If there is a case of VAT Refund, then you will be getting an option “Do you wish to request a refund for the above amount of excess recoverable tax”. If you select “YES”, then you are proceeding further to request for refund and if you select “NO” then, the net tax will be carried forward to subsequent tax periods. Submit your return.
- Login to FTA Portal.
- Go to VAT Tab > VAT Refund Tab > VAT Refund request.
- Fill up the form. (E.g.: TRN, Legal name, total excess VAT, amount of refund requested, remaining amount, and many more)
- Once you complete filling up the form, click on “SUBMIT” button.
The submitted form will be processed by the FTA. After it is approved by the FTA, you will get the refund in your bank account.