Can the FTA refuse a VAT refund?

Article 6 – Powers of the Authority The Authority is entitled to: 1. Request information, records, or otherwise audit the activities of the Bureau Expo 2020 Dubai to determine the following: a. The refunds paid to the Office of the Official Participant followed the process as agreed between the Authority and the Bureau Expo 2020 Dubai. b. The Office of the Official Participant was eligible to the refund. 2. Refuse refund of Tax where it determines that it is not due to the Office of the Official Participant.

1 January 2023 onwards 2.6 Within 12 months of the issuance of the Mosque Operation Commencement Certificate from the Competent Authority Verification and audit process The FTA or the entity the FTA contracted with for purposes of the Mosque refund verifications (“Verification Body”)9 will verify the eligibility of the Donor to recover the VAT incurred on the qualifying goods and services (see paragraph 2.4.2) and audit the submitted supporting documents.10 The verification and audit procedures may, for example, include the following: • Verifying the amount of input tax paid by the Donor based on the supporting valid tax invoices and proof of payment submitted by the Donor; • Requesting further information to determine the particulars of the supplies to ascertain whether the VAT incurred on the goods and services was incurred directly in respect of the construction of the Mosque.11 After the verification/audit procedures are completed, the FTA either accepts or rejects the refund request. If the request is accepted, the FTA will refund the verified amount of VAT.12 2.7 Retention payments The Donor may submit a subsequent refund request in respect of a retention payment relating to the construction of a Mosque, if the retention amount is paid after the original refund request was submitted in accordance with paragraph 2.5. Such request may be submitted within one year from that date the retention amount was paid. This refund request must be supported by a valid tax invoice as well as proof that the retention amount (including VAT) was paid. 9 10 11 12 Defined in Article 1 of Cabinet Decision No.82. Article 3(3) of Cabinet Decision No. 82. Article 3(4) of Cabinet Decision No. 82. Article 3(5) of Cabinet Decision No. 82. VAT Guide | Refund of VAT Incurred on the Construction and Operation of Mosques| VATGRM1 7

VAT REFUND SUMMARY USER GUIDE This guide will help you prepare your VAT Refund Claims. About VAT Refund Taxable Persons are able to request a VAT refund at any point when there is a credit or when the input VAT is greater than output VAT. Purpose of the Claim Every Taxable Person is required to file a VAT return summarizing the VAT due to the FTA for the tax period. When the input tax is greater than output tax on a VAT return, the Taxable Person is able to request a VAT refund after submission of the VAT return or at any later time when there is a credit owed to them. Timeframes for repayment Where the Taxable Person makes a claim for a refund of excess refundable tax, the FTA will within 20 business days of an application being submitted, review the application and notify the Taxable Person of its decision to accept or reject the refund claim. The FTA may notify the applicant that it requires a longer period than (20) business days to consider the application where appropriate. Submitting the Claim 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. 1