Who can apply for VAT refund?
Any taxable person at any point in time when the input VAT is greater than output VAT. The person should be a taxable registered person for claiming the refund. Unregistered persons paying VAT on purchases/expenses are not eligible to claim the refund.
Although the user guide does not provide clarification, input VAT should be read as recoverable input VAT apportioned. Only VAT which is apportioned to make taxable supply, qualify as recoverable input VAT. (Calculation of apportioned input VAT).
Instances of VAT refund:
1. Input VAT paid for making zero-rated supply of goods or services.
2. Excess VAT paid
3. Where VAT paid for purchase is more than VAT paid on the sale
When to apply for VAT refund?
VAT refund can be requested either after:
1. Submission of VAT return
2. Any time when there is excess credit
What is the timeframe for VAT repayment?
FTA will review the application within 20 days of submission and notify the taxable person. IF any longer period is required, it will be notified to the applicant.
How to apply for VAT refund?
1. Login to the FTA e-Services Portal.
2. Initiate the form: go to the ‘VAT Tab‘ and then go to ‘VAT Refunds’ tab. Click on ‘VAT Refund Request’ to access the form.
3. Complete your Refund Form: Fill in the form field by field. Note that some of the fields are pre-populated using the information contained in your account User Profile. Please ensure that the information is correct before completing the form.
4. Submit the Claim: using the ‘Submit’ button.
You will receive an email notification from the FTA on the result of your application. Once your claim is approved, the amount will be returned within 5 business days.
5. Verify your balance post the approval: Once you receive a confirmation email of the refund, you may check your balance through the ‘My Payment’ tab under the Transaction History section.
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