How do I apply for a VAT refund from the FTA?

Article (1) Requirements for Retailers to Participate in the Value Added Tax Refunds for Tourist Scheme A retailer wishing to participate in the Value Added Tax Refunds for Tourist Scheme shall be required to: 1. Be registered with the Federal Tax Authority and hold a valid Tax Registration Number for VAT purposes. 2. Be a seller of goods that are not excluded from refund as determined by the Federal Tax Authority. 3. Submit an application to join the scheme as determined by the Federal Tax Authority and be subject to a credit check by the Operator. 4. Regularly submit VAT returns and settle payable tax to the FTA.

Article 67 – Business visitors 1. The Authority shall implement a Businesses VAT Refund Scheme for Foreign Businesses to allow the repayment of Tax on expenses incurred in the State by a foreign entity which has no Place of Establishment or Fixed Establishment in the State or the Implementing State, and is not a Taxable Person. 2. For the purpose of this Article, a “foreign entity” is any Person that carries on a Business as defined in this Decision and is registered as an establishment with a competent authority in the jurisdiction in which he is established. 3. A foreign entity is not entitled to make a claim under the VAT Refunds for Foreign Businesses Scheme in the following cases: a. If it makes supplies which have a place of supply in the State, unless the Recipient of Goods or Recipient of Services is obliged to account for the Tax on those supplies in accordance with Clause 1 of Article 48 of the Decree-Law. b. If the Input Tax relates to Goods or Services for which the Tax is not recoverable in accordance with Article 53 of this Decision. 50 Clause amended as per Cabinet Decision No. 24 of 2021 Cabinet Decision No. 52 of 2017 and its amendments – As published by the Ministry of Finance 59 c. If the foreign entity is from a country that does not in similar circumstances provide refunds of value added tax to entities that belong to the State. 4. A foreign tour operator is not entitled to make a claim under the VAT Refunds for Foreign Businesses Scheme in connection with undertaking activities as a tour operator. 5. The claim for any refund shall be made on an electronic form as will be provided for the purpose by the Authority. 6. The claim form shall contain such particulars as may be required by the Authority including: a. Name and address of the foreign entity. b. Nature of activities of the foreign entity. c. Details of the registration of the foreign entity with the competent authority in the country where it is established. d. Description of reasons for incurring expenses in the State. e. Description of activities undertaken in the State. f. Details of expenses incurred in the State during the period of the claim. 7. The claim shall be accompanied by such documents or other evidence as may be required by the Authority. 8. The period of the claim shall be 12 calendar months. 9. The minimum claim amount of Tax that may be submitted under VAT Refunds for Foreign Businesses Scheme shall be AED 2,000. 10. As an exception to Clause 1 and Paragraph (c) of Clause 3 and Clause 8 of this Article, Businesses resident in any GCC State that is not considered to be an Implementing State according to the Decree-Law and this Decision, may submit an application for refund of Tax incurred on Goods and Services supplied to them in the State.

After establishing that all the eligibility criteria set out in paragraph 3.3 were met, the Operator may apply for a refund in respect of the VAT incurred on goods and services acquired directly in connection with the Operation of the Mosque by completing the required application which is available on the FTA’s e-Services platform.19 The refund request must be submitted within the following prescribed period:20 Start date of Mosque Operation per the written permit issued by the Competent Authority Years for which the application is submitted Refund Applications may be submitted during Before 01 January 2022 2018-2022 April 2023 – September 2023 From 01 January 2022 onwards 2022 October 2023 – December 2023 All Mosques 2023 onwards January – April of the following year No refund applications for VAT incurred by Operators in respect of the Operation of Mosques will be accepted outside the above-mentioned periods.21 Kindly note that the invoice date reflected on the tax invoices supporting the Operator’s refund request shall be considered to determine in which year such VAT may be included in the Operator’s refund application. For example, tax invoices issued between 2018 and 2022 may only be included in one application submitted within the timeframe starting April 2023 to September 2023. As for tax invoices issued in January 2023 for the same Mosque, these would be submitted in an application between January and April 2024. Moreover, the applicant shall ensure that all relevant tax invoices relating to the period for which the application is made are included in the application as the applicant is expected to submit one application for the years 2018 to 2022, and one application for each year after that. 3.5 Verification and audit process The FTA may verify the eligibility of the Operator to recover the VAT incurred on the qualifying goods and services (see paragraph 3.3) and audit the submitted supporting documents. The verification and audit procedures may, for example, include the following: • Verifying whether the Operator is eligible to submit a refund request in respect of VAT incurred on the Operation of the Mosque. 19 20 21 Article 5(1) of Cabinet Decision No. 82. Article 5(1) of Cabinet Decision No. 82, read with Article 2 of Ministerial Decision No. 162. Article 3 of Ministerial Decision No. 162. VAT Guide | Refund of VAT Incurred on the Construction and Operation of Mosques| VATGRM1 11

Contents 1. Brief overview of this user guide .......................................................................... 2 2. Definitions ............................................................................................................... 2 3. Mechanism of the refund ....................................................................................... 3 3.1. References in the Law and Executive Regulation..................................................... 3 3.2. How does it work? .................................................................................................... 3 3.3. Who is eligible to be licensed under the scheme? .................................................... 5 3.4. When can VAT refund be provided to customers? ................................................... 5 4. The Licensing Application ..................................................................................... 5 4.1. Eligibility criteria ........................................................................................................ 5 4.2. Documents the Supplier should provide to FTA........................................................ 6 5. How to apply to the FTA to be a Supplier for Exhibitions and Conferences Services ......................................................................................................................... 7 6. Processing the Supplier’s application by the FTA .............................................. 8 7. Licence Renewal (applies to scenario A) ............................................................. 8 7.1. When should the Supplier apply for renewal? .......................................................... 8 7.2. How to apply for licence renewal .............................................................................. 8 7.3. Penalties for expired licences ................................................................................... 8 8. Providing VAT refund on Services supplied to International Customers .......... 9 8.1. Documents to be collected from International Customers ........................................ 9 8.2. Processing the request by the Supplier .................................................................... 9 8.3. Record Keeping ........................................................................................................ 9 9. Filing Returns by the Supplier to the FTA .......................................................... 10 10. Registration requirements in the UAE for International Customers ................ 10 Appendix 1: Supplier’s Licence Application Form to grant the right to occupy space ............................................................................................................................ 12 Appendix 2: Supplier’s Licence Application Form to grant access to events’ ...... 16 Appendix 3: Declaration Letter Template for the International Exhibitor / International Attendee of a Conference .................................................................... 20 1