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VAT refund claims in the UAE

Unlocking cash flow

Historic Value Added Tax (VAT) balances often remain unclaimed due to operational delays, process inefficiencies, or uncertainty around eligibility. As the United Arab Emirates (UAE) refund framework continues evolving, businesses may wish to revisit historical VAT positions before potential recovery opportunities expire.

The introduction of a five-year limitation period for VAT refund claims has increased the importance of reviewing historic VAT positions proactively. Businesses operating in the UAE may hold recoverable VAT balances linked to legacy transactions, excess input VAT, or historic filing positions that have not yet been assessed for refund eligibility.

At the same time, the Federal Tax Authority (FTA) continues to place greater focus on refund submissions and supporting documentation. Delays in preparing or submitting claims may impact a business’s ability to recover historic amounts within the required timelines.

Recovering VAT refunds may provide businesses with an opportunity to improve working capital, strengthen internal VAT processes, and establish a clearer basis for future refund applications. Deloitte’s UAE VAT specialists support businesses with assessing eligibility, reviewing documentation, managing refund submissions, and navigating interactions with the FTA.

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