VAT On Gold In UAE: What Every Buyer Should Know
20th Nov 2024
Dubai, the vibrant economic hub of the UAE, has introduced a VAT (Value Added Tax) system to enhance infrastructure, services, and the economy. As of 2018, VAT is levied on most goods and services, but both tourists and businesses in Dubai have opportunities to reclaim the VAT paid on eligible purchases. Whether visiting Dubai for a short stay or running a business, understanding how to apply for a VAT refund can save you money and streamline your operations.
In this blog, we will explain the VAT refund process for both tourists and businesses, outline the eligibility requirements, and explore how Gerald Duthie Accounting LLC, with its VAT services in Dubai, can assist you throughout the process.
A VAT refund in Dubai allows tourists and businesses to recover VAT on specific purchases. This refund can ease the financial burden, encourage tourism, and benefit businesses by improving cash flow. Below, we explain how tourists and companies can apply for VAT refunds in Dubai.
Tourists can claim a VAT refund on goods purchased from registered retail outlets. To do so, they must follow a simple process and ensure their purchases meet specific eligibility criteria.
VAT-registered businesses in Dubai can claim a refund on VAT paid for business-related purchases. To ensure compliance and streamline the VAT refund process, companies often rely on professional tax services in Dubai to manage their filings and optimise their claims.
To be eligible for a VAT refund, tourists must meet the following criteria:
• Non-resident status: Only non-residents of the UAE can claim a VAT refund.
• Eligible goods: The goods purchased must be removed from the UAE in unused condition within 90 days of the purchase date.
• Tax-free shopping: Purchases must be made from stores participating in the “Tax Refund for Tourists Scheme.”
Businesses must meet the following criteria to claim VAT refunds:
• VAT registration: Businesses must be registered with the UAE Federal Tax Authority (FTA).
• Business-related purchases: VAT can only be refunded on goods and services used for business purposes.
• Record-keeping: Accurate documentation of invoices and transactions is crucial for the refund process.
Whether you are a tourist or a business, the VAT refund process in Dubai involves a few essential steps. Let’s break them down.
Tourists can follow these steps to apply for a VAT refund in Dubai:
Step1: Shop at Participating Retailers
Purchase goods from stores that display the “Tax-Free Shopping” sign. These stores are registered under the VAT refund scheme and will issue a tax-free receipt when you buy eligible items.
Step2: Request the Tax-Free Receipt
When making a purchase, show your passport to the store clerk. The clerk will issue you a tax-free receipt detailing the items and VAT paid.
Step3: Validate Your Purchase at the Airport
Before departing Dubai, visit the VAT refund counter at the airport. Show your tax-free receipts, passport, and the purchased items. A customs officer will inspect your goods and approve the refund.
Step4: Receive Your Refund
Once approved, the VAT refund will be processed. You can choose to receive your refund via cash or credit card.
The process for VAT refunds for businesses involves a few more steps:
Step1: Ensure VAT Registration
To claim VAT refunds, your business must be registered with the UAE Federal Tax Authority (FTA) and have a valid VAT registration number.
Step2: Accurate Record-Keeping
Maintain proper documentation of invoices and receipts for all business-related purchases. Businesses offering Dubai accounting services can help track your VAT-paid expenses.
Step3: Submit VAT Returns
Submit your VAT returns on time, ensuring that the VAT paid on eligible purchases is included. Make sure your VAT return is accurate and that all documentation is provided.
Step4: Submit the Refund Application
Log in to the FTA online portal and submit a refund application. Upload all the necessary documents, including VAT invoices and transaction records.
Step5: Wait for Approval
The FTA will review your application, and if everything is in order, the VAT will be credited to your registered bank account or offset against future VAT liabilities.
Navigating the VAT refund process can be daunting and time-consuming, especially for businesses. Whether you're a tourist looking to reclaim VAT on your purchases or a company aiming to optimise VAT refunds, working with professionals can make all the difference.
At Gerald Duthie Accounting LLC, we offer a full range of VAT services in Dubai to help businesses and tourists alike. Here’s how we can assist:
• VAT Registration: We help businesses register their VAT with the FTA, ensuring full compliance with UAE tax laws.
• VAT Return Filing: Our team ensures your VAT returns are accurate and submitted on time, helping you avoid penalties and delays in your refund claims.
• Tax Refund Assistance: We help collect and organise the required documents to facilitate a smooth VAT refund process and ensure all eligible claims are accounted for.
• Consulting Services: Our team offers expert advice on VAT planning, helping businesses minimise liabilities and optimise refund opportunities.
In addition to VAT assistance, our management consulting services in Dubai help businesses optimise their operations, financial strategies, and overall tax planning to ensure long-term success.
To ensure a hassle-free VAT refund experience, here are some essential tips:
• Ensure Eligibility: Confirm that your purchases meet the VAT refund criteria. Only new, unused goods are eligible for tourists, and businesses must ensure the purchases are related to taxable business activities.
• Keep Documents Ready: Always retain your invoices and receipts, as they are necessary for tourists and businesses to claim VAT refunds.
• Use Professional Services: Working with accounting services in Dubai ensures that your records are accurate and up to date, minimising errors in your VAT refund application.
• Timely Submissions: Be aware of deadlines. Tourists must apply within 90 days of purchase, while businesses must submit VAT returns and refund claims within the designated tax period.
Understanding how to apply for a VAT refund in Dubai can be a game-changer for tourists and businesses. Tourists can enjoy a simple process to reclaim VAT on their shopping, while companies can reduce operating costs and improve cash flow by efficiently managing their VAT refunds.
However, navigating the VAT refund system can be complex, especially for businesses. That’s where Gerald Duthie Accounting LLC comes in. With our expert VAT services in Dubai, we ensure that the process is smooth, compliant, and optimised to your advantage.
Contact us today for professional assistance and ensure your VAT refund process is handled seamlessly!
1. Can tourists claim VAT refunds on all goods purchased in Dubai?
No, tourists can only claim VAT refunds on unused goods exported from the UAE. Services such as meals or hotel stays are not eligible for refunds.
2. How do I know if a store participates in the VAT refund scheme?
Look for stores that display the “Tax-Free Shopping” sign. You can also inquire at the store to confirm if they are part of the tax refund program.
3. How long does processing a VAT refund for tourists take?
The refund is processed at the airport when you leave the UAE. If you opt for a refund to your credit card, the funds may appear for several days.
4. Can a business claim VAT refunds on all expenses?
Businesses can only claim VAT refunds on business-related expenses used for taxable supplies. Personal or exempt expenses are not eligible.
5. What if my VAT refund application is rejected?
You can appeal the rejection through the FTA’s online portal. To avoid such issues, ensure all your documents are accurate and submitted on time.
Email: info@geraldduthie.ae
Call: +971 (50) 695-1806
Address: Suite #78, Floor 11, Ibn Battuta Gate Office Building, Jebel Ali, Dubai
