How Long Does It Take to Get a VAT Refund in Dubai?

VAT refunds in Dubai provide significant financial relief for businesses and tourists by allowing them to recover input VAT paid on eligible purchases. However, one of the most frequently asked questions is: How long does it take to receive a VAT refund? The processing time for VAT refunds depends on several factors, including the type of applicant (business or tourist), the accuracy of the refund application, and compliance with Federal Tax Authority (FTA) regulations. This blog will provide a detailed breakdown of the VAT refund processing time, the factors affecting refund speed, and how businesses and tourists can ensure a faster refund process.

Understanding VAT Refund Processing Times in Dubai

VAT Refund Processing for Businesses

• Standard processing time: 20 business days from the date of submission.

• Potential delays: Applications with missing documentation or compliance issues may take longer to process.

VAT Refund Processing for Tourists

• Instant refund at the airport: Once validated, tourists can receive their refund immediately in cash or via credit card.

• Credit card refunds: 7 to 10 business days after validation at the refund counter.

Note: If additional verification is required, refunds may take longer than the estimated timeline.

Step-by-Step Breakdown of VAT Refund Processing Time

1. VAT Refund for Businesses: Processing Time and Steps

Businesses registered for VAT in Dubai can reclaim input VAT paid on business-related expenses. The VAT refund process for businesses involves the following steps: Step 1: Submission of VAT Refund Application (Day 1-2)

• Businesses file VAT refund applications through the FTA e-Services portal.

• The application must include supporting documents such as tax invoices, proof of payment, and VAT return filings.

Step 2: Initial Review by the FTA (Day 3-10)

• The FTA reviews the application and verifies the submitted documents.

• If there are no discrepancies, the application proceeds to the next stage.

• If additional documents or clarifications are needed, the process may be delayed.

Step 3: Refund Approval and Payment Processing (Day 11-20)

• The FTA approves the VAT refund request and processes the refund.

• Refunds are credited to the business’s registered bank account within 20 business days from the date of approval.

2. VAT Refund for Tourists: Processing Time and Steps

Tourists can reclaim 85% of the VAT paid on eligible purchases, with a small processing fee deducted. The refund process for tourists is much faster compared to businesses. Step 1: Shopping at VAT-Registered Stores

• Tourists must purchase goods from retailers participating in the VAT refund scheme.

• The retailer issues a tax-free receipt linked to the tourist’s passport.

Step 2: Validating the VAT Refund at the Airport or Exit Point

• Before leaving Dubai, tourists must validate their purchases at a Planet Payment VAT refund kiosk or counter.

• The process takes a few minutes if all receipts are properly recorded.

Step 3: Receiving the VAT Refund

• Cash refund: Tourists can receive an instant refund in cash at the airport.

• Credit card refund: If the refund is issued to a credit card, the payment may take 7 to 10 business days to reflect in the account.

Factors That Can Delay VAT Refund Processing

1. Missing or Incorrect Documentation

• Refund applications with incomplete tax invoices, incorrect TRNs, or missing bank details may be rejected.

• Solution: Double-check that all required documents are attached before submitting the application.

2. Errors in VAT Return Filings

• If a business’s VAT refund claim does not match previous VAT returns, the FTA may conduct a detailed audit, delaying the process.

• Solution: Ensure that VAT return filings are accurate and aligned with refund claims.

3. Compliance Issues with UAE VAT Regulations

• If a business incorrectly claims VAT on non-refundable expenses, the refund request may be delayed or rejected.

• Solution: Work with a VAT consultant to verify that all VAT claims comply with FTA rules.

4. Delays in FTA Review and Approval

• If the FTA receives a high volume of refund requests, processing times may increase.

• Solution: Submit VAT refund applications as early as possible to avoid processing delays.

How to Ensure a Faster VAT Refund Process

For Businesses

• Submit VAT refunds on time to avoid backlogs.

• Ensure all invoices meet FTA requirements (e.g., supplier VAT number, invoice date, clear VAT breakdown).

• Use accounting software to maintain accurate VAT records and prevent discrepancies.

• Work with VAT consultants to review applications before submission.

For Tourists

• Shop at stores that participate in the VAT refund scheme.

• Keep all tax-free receipts and invoices for verification.

• Arrive early at the airport to allow sufficient time for VAT validation.

• Opt for a credit card refund for a faster and more secure refund process.

How Young and Right Can Help

Many businesses and tourists struggle with VAT refund delays due to incomplete documentation, compliance issues, or incorrect filings. Young and Right provides expert VAT consultancy services to ensure businesses and individuals receive their VAT refunds as quickly as possible.

1. VAT Refund Assistance for Businesses

• Reviewing and submitting VAT refund applications on behalf of businesses.

• Ensuring compliance with UAE VAT regulations to prevent delays.

• Managing VAT return filings to align with refund requests.

2. VAT Refund Support for Tourists

• Guiding tourists through the refund process to ensure fast approvals.

• Verifying VAT invoices and receipts before submission.

• Assisting tourists with rejected refund claims to resolve disputes.

3. Resolving VAT Refund Disputes

• Handling rejected VAT refund applications and submitting appeals.

• Providing legal support in case of VAT audits or compliance checks.

• Liaising with the FTA to resolve pending VAT refunds.

4. Ensuring Faster Processing Times

• Optimizing VAT refund submissions for quick FTA approval.

• Tracking refund applications to prevent unnecessary delays.

• Providing real-time updates on VAT refund processing status.

With Young and Right, businesses and tourists can enjoy a smooth, hassle-free VAT refund process, ensuring their claims are processed on time and without issues.

Conclusion

The VAT refund processing time in Dubai varies depending on the type of applicant: Businesses: Refunds typically take 20 business days. Tourists: Instant refunds for cash claims, while credit card refunds take 7-10 business days. By ensuring accurate filings, proper documentation, and compliance with FTA regulations, businesses and tourists can avoid unnecessary delays and receive VAT refunds quickly. For expert VAT refund assistance, Young and Right offers professional VAT consultancy services, helping clients streamline the refund process and maximize their claims.