News headline 1 : : The UAE's Ministry of Finance has listed out a number of entities that are not required to register for Corporate Tax. News headline 2 : : The ministerial decision on the Exception from Tax Registration will apply to government and government-controlled entities, extractive businesses, and non-extractive natural resource businesses. News headline 3 : : Additionally, a non-resident person will not be required to register for Corporate Tax if they earn only UAE-sourced income and do not have a Permanent Establishment in the UAE. News headline 4 : : Meanwhile, federal government, UAE government departments and authorities, and other public institutions, do not require to register under Federal Tax Authority as long as they continue to meet the conditions for tax exemption. News headline 5 : : Federal Tax Authority ramps up its efforts by expanding inspection visits by 104% in six months. News headline 6 : : Dubai Financial Services Authority Introduces Whistleblowing Regime News headline 7 : : Big update on UAE Corporate Tax. News headline 8 : : Regular Auditing and maintaining accounts have a greater contribution towards the successful running of a business. The lack of proper books of accounts and regular auditing often results in the business owners continuing to run the venture with the impression that it is going on profitably, while it might be running in loss. The realization comes late and the resultant damages are often irreplaceable. This is where a pragmatic approach to External Auditing services in UAE becomes inevitable. Every business needs the service of professionally qualified and experienced External Auditors in UAE to look into their accounting activities.

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How to Claim VAT Refunds in the UAE: A Complete Guide

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Value Added Tax (VAT) is a consumption tax that is levied on the supply of goods and services in the UAE. If you are a non-resident of the UAE and you purchase goods or services that are subject to VAT, you may be eligible for a VAT refund. In this blog post, we will discuss the eligibility criteria for VAT refunds, the documents you need to claim a refund, and the process of claiming a refund. We will also provide some tips for making the process as smooth as possible.

How to Claim VAT Refunds in the UAE

Understanding VAT Refunds for Visitors or Non Resident

If you are a non-resident visitor to the UAE, you can claim a refund of the VAT paid on eligible goods purchased during your stay. The VAT refund scheme is designed to promote tourism and enhance the attractiveness of the UAE as a shopping destination. By following the steps outlined below, you can reclaim a portion of the VAT you paid and enjoy additional savings.

Step 1: Eligibility Criteria

Before you embark on the process of claiming VAT refunds, it's important to ensure that you meet the following eligibility criteria:
Non-Resident Status: You must be a non-resident of the UAE, meaning that you do not hold a valid residency visa.
Minimum Spend Requirement: You must have made purchases from retailers who are registered for the Tax Refund for Tourists Scheme (TRS), and the total value of your purchases (excluding VAT) must meet the minimum spend requirement specified by the authorities. As of the time of writing, the minimum spend is set at AED 250.:
Departure from the UAE: You must depart from the UAE within 90 days from the date of purchase.

Shopping at Registered Retailers

To be eligible for VAT refunds, you need to make your purchases from retailers who are registered for the TRS. Look for the "Tax-Free" logo displayed at the participating stores. These retailers are authorized to issue tax invoices and provide you with the necessary documentation for claiming VAT refunds.

Requesting a Tax Invoice

When making a purchase, ensure that you request a tax invoice from the retailer. The tax invoice should include essential details such as the retailer's name and address, the date of purchase, a description of the goods, the total amount paid, and the VAT amount charged.

Validation of Tax Invoices

Before departing from the UAE, you must validate your tax invoices using the self-service kiosks available at the airport or any other designated locations. Simply follow the instructions on the kiosk, scan your tax invoices, and collect the validation receipt.

VAT Refund Claim

There are two options available for claiming VAT refunds:
Option 1: Cash Refund If you prefer to receive a cash refund, you can proceed to the cash refund counter at the airport or other designated locations. Present your validated tax invoices, along with your passport and boarding pass, to the authorized personnel. They will verify your documents and process your refund accordingly.
Option 2: Credit Card Refund Alternatively, you can choose to receive your refund via credit card. In this case, you will need to provide your validated tax invoices, passport, and credit card details at the designated refund counter. The refund amount will be credited to your credit card within a specified period.

Step 6: Keep Copies of Documents

It is essential to keep copies of all the necessary documents, including the tax invoices, validation receipts, and refund receipts, for your records and future reference.
a) The original tax invoices for the goods or services you purchased.
b) Your passport or other proof of identity.
c) A completed VAT refund application form.

Additional Tips for a Smooth VAT Refund Process

Here are some additional tips to ensure a smooth VAT refund process:
Plan Your Shopping: Familiarize yourself with the retailers participating in the TRS and plan your shopping accordingly. This will help you meet the minimum spend requirement and maximize your VAT refunds.
Know the Deadline: Remember that you must depart from the UAE within 90 days from the date of purchase to be eligible for VAT refunds. Make sure to plan your travel accordingly.
Retain Original Packaging: Retain the original packaging of your purchases as customs officials may request to inspect the goods during the refund process.
Be Prepared at the Airport: Allow sufficient time at the airport to complete the VAT refund process. Be prepared with all the necessary documents and follow the instructions provided at the self-service kiosks or refund counters.

How to get help to claim a Vat refund?

When it comes to VAT refunds and VAT consultancy in Dubai, BSD Prime Services stands out with their exceptional expertise and a dedicated team of experts. With over 10 years of experience, they have helped numerous clients navigate the complexities of VAT refunds successfully. Trust BSD Prime Services to provide you with the guidance and assistance you need for a seamless VAT refund process.
Call today at +971 55 971 6033