The introduction of Value Added Tax (VAT) in the United Arab Emirates in January 2018 marked a major shift in the country's fiscal framework. Since then, businesses and tourists alike have contributed to the tax system—yet many remain unaware that they may be eligible for a refund on VAT paid. Whether you’re a registered business seeking a refund through the Federal Tax Authority (FTA), or a tourist looking to claim back VAT at the Dubai Airport, the UAE offers structured pathways for reimbursement.

In this guide, we explore how to claim a VAT refund in the UAE, covering everything from eligibility criteria and documentation to the refund application process for both businesses and visitors. We’ll also walk you through common reasons for rejected claims and how working with experienced tax consultants can streamline your refund process.

Understanding the VAT Refund in the UAE

The United Arab Emirates introduced Value Added Tax (VAT) in 2018 at a standard rate of 5% on most goods and services. Since then, VAT has become a key part of the UAE’s fiscal framework, with both businesses and tourists contributing to the system through their purchases and transactions. However, under certain conditions, individuals and entities may be eligible to reclaim part of the VAT paid through the official VAT refund scheme.

For businesses, VAT refunds apply to input tax incurred on taxable activities, allowing them to recover eligible expenses. For tourists, the government offers a specialized tourists VAT refund program that enables them to shop tax free and claim back VAT before exiting the country. This process is facilitated at designated locations such as Dubai Airport and major land borders.

The refund for tourists is part of a broader tax free transaction framework powered by a digital tax refund system. This system uses features such as the tax free tag and digital forms to verify and validate each purchase. To claim a refund, tourists must follow the approved steps and complete the validation process prior to departure.

The goal of the scheme is to ensure that those who are eligible receive the maximum refund possible—up to 85% of the maximum refund amount paid, after administrative fees. Whether you’re a business owner or a traveler, claiming your VAT refund is your legal right—provided the refund request is submitted correctly and within the FTA’s prescribed timelines.

VAT Refund for Businesses: Eligibility and Requirements

Businesses registered under the UAE VAT regime can claim input tax refunds under specific conditions. To qualify, the company must be registered for VAT and hold a valid Tax Registration Number (TRN), be engaged in taxable or zero-rated activities, and maintain proper tax invoices and financial records that support the refund claim. These documents must reflect the VAT incurred on eligible business expenses that contribute to taxable operations.

The process of how to claim a VAT refund in UAE for business purposes begins with ensuring that your input tax exceeds your output VAT liability, resulting in a net refundable amount. The refund is submitted through the official VAT refund form available on the EmaraTax portal. Common recoverable costs include VAT paid on raw materials, contractor services, purchased goods, capital expenditures such as machinery or office equipment, and goods imported under the company’s customs code.

However, VAT paid on entertainment, personal expenses, or other restricted categories is generally considered non-recoverable. To ensure the refund claim is accepted, companies must submit the refund application along with clear transaction details, original tax invoices, and full compliance with the FTA’s eligibility criteria.

Step-by-Step Guide: How to Claim VAT Refund in UAE for Business

The VAT refund process for businesses is fully digital and managed through the EmaraTax platform, the official portal of the Federal Tax Authority (FTA). Here's how it works:

1. Login to EmaraTax Portal

Use your registered FTA credentials to access the EmaraTax system and navigate to your business dashboard.

2. Access the VAT Refund Request

Click on the VAT tab and select ‘VAT Refund Request’ to begin the refund claim process.

3. Complete the Refund Form (VAT311)

Enter your company’s input tax, output tax, and total VAT payable or refundable. Supporting documentation such as tax invoices, validation records, and accounting data must be retained for FTA review.

4. Submit Your Request

Once the refund application is complete, submit it for FTA review. Your designated bank account will be used for refund transfers, so ensure the details are up to date. The bank determines the timeline for actual credit.

5. Receive Refund

If approved, the refund amount will be processed and credited to your business bank account within 20 working days. If rejected, you may file a clarification or reconsideration through the portal.

Refund requests should be filed within six months from the end of the tax period in which the credit arose. Failure to meet this timeline may result in the forfeiture of the refund.

VAT Refund for Tourists in Dubai

In addition to business claims, tourists can also claim a VAT refund in Dubai for eligible shopping expenses. This is part of the UAE’s tax-free shopping initiative known as the Tourist Tax Refund Scheme. The program is administered by Planet Tax Free and available at all major airports and land borders.

Here’s how to claim a VAT refund in Dubai Airport before leaving the country. First, shop at participating retailers clearly marked with “Tax Free Shopping” signage. At checkout, present your passport to receive a digital tax free form or tax free tag, which digitally links your receipt to your refund claim.

Before departure, visit the Planet Tax Free self-service kiosks located in Dubai Airport or other approved exit points. Present your purchased goods, sales receipts, tax invoices, boarding pass, and passport. After successful export validation, you can choose to receive the refund via credit or debit card or as a cash refund up to a capped limit. The refund amount is calculated based on the VAT paid, minus a small administrative fee. Tourists may receive up to 85% of the total VAT on eligible purchases, depending on the refund method selected and the applicable foreign exchange rate.

Key Timelines and Common Mistakes

For business visitors and UAE-based companies, VAT refund requests can only be submitted after filing the relevant VAT return that shows a credit balance. According to Federal Tax Authority (FTA) guidelines, the refund application must be made within six months from the end of the tax period during which the refund amount was generated. This applies to both UAE businesses and foreign businesses operating in the UAE under specific conditions.

When it comes to common mistakes, businesses often face rejection due to:

→ Submitting incomplete or inaccurate documentation

→ Trying to reclaim VAT on ineligible expenses or goods not meeting refund criteria

→ Using improper tax invoice formats (e.g., missing TRN or incorrect values)

→ Failing to ensure that accounting records reconcile with VAT returns

→ Not associating the refund claim with the correct taxable person’s profile or misreporting transactions on the shopper portal

Another key mistake includes failing to differentiate between VAT incurred on relevant goods (eligible for refund) and general expenses, especially in cases involving foreign businesses or UAE nationals engaged in building residential properties—which have special criteria for VAT recovery.

For tourists under the Tourists Scheme, the most frequent reason for rejected VAT refunds is failure to export validate the purchase before exiting the country. Tourists must be present at the self-service kiosks in approved departure areas, present their original sales receipts, goods, and documents, and complete the export validation process. Once a traveler leaves the UAE without completing the process, the chance to claim VAT through the tax free shopper portal is forfeited.

In summary:

1. Submit refund applications within 6 months of the tax period.

2. Ensure invoices are correctly formatted with all details, including TRNs.

3. Verify that claims are linked to the correct taxable person or entity.

4. Use the shopper portal appropriately for tourist or foreign claims.

5. Validate exports through the designated tourist refund scheme channels before departure.

How Young & Right Simplifies Your VAT Refund Process

Whether you’re learning how to claim VAT refund in Dubai as a tourist or handling complex business refund claims, Young & Right is here to help you manage every step of the process. Our VAT refund services include:

1. End-to-End Refund Filing

We manage the entire VAT refund request for businesses—from verifying documentation to submitting the VAT311 form and following up with the FTA on the refund application status.

2. VAT Invoice Auditing

Our experts audit your original tax invoices to ensure all expenses qualify under FTA rules. We also reconcile VAT amounts with your accounting system for clean refund claims.

3. Compliance with the Tax Refund System

We ensure that your refund form is submitted on time through the EmaraTax platform and that all supporting documents meet the FTA’s eligibility criteria and validation process.

4. Tourist Refund Assistance

For high-value purchases or group travelers, we offer support in organizing receipts, ensuring goods are eligible, and maximizing your refund at Dubai Airport or other land borders.

5. Penalty Reconsideration and Appeals

If your VAT refund is denied, we help you submit clarification and reconsideration requests to the FTA to recover the amount you're entitled to reclaim.

Whether your case involves a cash refund, tax free purchase, tourist refund scheme, or reclaiming VAT paid on eligible expenses, Young & Right ensures your business or travel experience is backed by expert support.

Conclusion

Claiming a VAT refund in the UAE is not only possible—it’s essential for maximizing cash flow, reducing tax burdens, and staying compliant with the Federal Tax Authority. Whether you're a business filing for input tax refunds or a tourist shopping under the tax free scheme, the VAT refund process is structured, transparent, and accessible.

Don’t leave money on the table. Let Young & Right guide you through how to claim VAT refund in the UAE with confidence and ease—saving time, avoiding errors, and ensuring timely reimbursements.