Comprehensive Guide to VAT Refund Process in the UAE for Finance Managers

A UAE business can claim a VAT refund through the EmaraTax Portal using Form VAT311 when it has an eligible excess input VAT credit. The process requires finance teams to submit the claim with the required supporting documents and meet the FTA’s applicable timelines and requirements.

‍

If you are a VAT-registered business in the UAE, or a foreign entity operating here, you will at some point want to recover the VAT paid. Now, while it's common knowledge that the VAT refund process exists, the confusion arises in picking the right refund scheme that you are eligible for.

This guide walks through each VAT refund scheme, explains who qualifies, and outlines the steps involved in making a successful claim.

What is a VAT refund in the UAE?

Since 1st January 2018, every purchase in the UAE has had a 5% VAT added to it. As a result, eligible businesses and individuals, under specific conditions, can reclaim the additional VAT they have paid on certain qualifying purchases. This process is what is referred to as a "VAT refund". 

The UAE has four VAT schemes for reclaiming VAT:

How to claim VAT under each of these schemes? 

Each of the four schemes is designed for specific instances are have specific eligibility requirements for reclaiming VAT. 

1. VAT refunds for VAT-registered businesses

Any business in the UAE is required by law to register for VAT if the total of its taxable supplies and imports exceeds AED 375,000 in any given 12-month period or in the next 30 days. They also have the option to register voluntarily if the aforementioned value exceeds AED 187,500.

When such a business is in a net refundable position, i.e they input VAT (paid toward business-related purchases or expenses) exceeds the output VAT (what was collected on sales), they are eligible for a VAT refund. 

At this point, they can either: 

• Carry the balance forward to offset future VAT liabilities
• Submit a VAT311 refund request through EmaraTax.

The process to claim a VAT311 refund

If a business does decide to file for a VAT refund, it must do so as follows: 

• Log in to your EmaraTax account.
• Fill out the VAT311 refund form.
• Confirm the refundable amount and your bank account details. 
• Submit the application.
• Wait for the FTA's review and approval.

The FTA usually processes these returns within 25 days. 

2. VAT refunds for foreign businesses

As a foreign business, you too can apply for a VAT refund on any expense you may have incurred while in the UAE, provided: 

• You do not have a local presence in the UAE.
• You are not registered for VAT.
• You are established in a country that offers a reciprocal VAT refund to UAE businesses. 
• You meet the FTA's minimum refund threshold. 

The process to claim a foreign business refund

You can apply for a VAT refund as a foreign business via the FTA's Business Visitor Refund Scheme. This process also happens via the EmaraTax portal. 

1. Once you log in, navigate to the "Business Visitor Refunds" section under the "Special refunds" section on the dashboard. 
2. Complete the FTA's standard refund form for foreign businesses.
3. Attach supporting documentation, invoices, proof of payment, and evidence that the business has no UAE establishment.

The applications for these VAT refunds are open between 1 March and 31 August for the previous calendar year's expenses, and the process takes roughly 40 days. 

3. VAT refunds for UAE nationals building a new residence

The UAE also allows UAE nationals building a new residence for their own use to recover VAT paid on certain construction-related expenses like:

• Building materials.
• Electrical and plumbing installations.
• Air conditioning systems.
• Fixed kitchens and sanitary fittings.

The process to claim a new residence VAT refund

You can claim the VAT refund under this scheme either via the VATGRH1 form on the EmaraTax portal or via the Maskan App available for Android and Apple ecosystems

If you are applying via the  EmaraTax portal: 

• Look for the "New Residence VAT Refunds" option, again available under the "Special refunds" section of the dashboard. 
• Click on “New Refund Request”, fill out the form, and submit it along with all the requested documentation. 

If you are applying via the Maskan App: 

• Log in with your  UAE Pass (the same one used for the EmaraTax portal).
• Create a housing-specific project and upload all the supporting documents and invoices eligible for the refund. 

The claim under this specific scheme must be filed within 12 months of completion of the project. Once approved, the refund is transferred directly to the applicant's bank account.

4. VAT refunds for tourists

If you are a tourist and are about to leave the UAE, you are also eligible to claim a VAT refund on certain purchases that meet the following conditions: 

• The purchases were made at retailers participating in the Tax Refund for Tourists Scheme and are valued at more than AED 250. 
• The goods must leave with you when you exit the country. 
• The purchases must be validated before departure.

The process to claim a tourist refund

Tourist VAT refunds are processed through Planet Tax Free kiosks located at the UAE's exit points in the airport, seaport or on any of the land borders. If you're eligible to claim a VAT refund as a tourist, the process goes as follows: 

• Shop at a participating retailer and request a digital or printed refund tag at the point of purchase.
• Keep your tagged receipts and passport on hand.
• Validate your purchases at a Planet Tax Free kiosk before departure, at the airport, a land border, or a seaport.
• Choose your refund method. You can opt for cash, capped at AED 35,000 per person within 24 hours, or card, or digital wallets like WeChat & AliPay. 

Where do VAT refund claims commonly go wrong?

For finance teams, VAT refund delays often start with small documentation or reconciliation gaps. Common issues include:

• Combining invoices from different tax periods in a single VAT 311 claim.
• Missing the five-year window for eligible claims.
• Submitting a bank validation letter that is more than three months old.
• Finding discrepancies between invoice amounts, tax amounts, and the VAT recorded in your books.

The easier approach is to catch these issues before filing, rather than during a refund review.

Powered by Built-in VAT Intelligence, Alaan’s AI engine streamlines tax workflows by automatically verifying tax codes, extracting invoice details, and flagging missing data. The system catches amount and VAT mismatches early, allowing finance teams to correct documentation errors long before submitting a VAT return or refund claim.

Summing it up

The UAE's VAT refund system covers several different groups, each with its own eligibility rules and application process. Yet all of them share one common requirement: maintaining clean financial records. 

As a business, the easiest way to get this done right is at the source of the spend. Alaan’s expense management tool helps finance teams capture receipts and invoice details and keep them linked to business expenses, so supporting documents are easier to find when a VAT refund claim is due. 

Book a demo with Alaan to learn more. 

FAQs

Is there a deadline to claim a VAT refund as a registered business?

Yes. As of 2026, businesses must file within five years from the end of the tax period in which the credit balance arose. After that, the right to claim it expires permanently.

Can a business claim a VAT refund without being VAT-registered?

Yes, if it's a foreign business with no UAE establishment, it can claim under the Business Visitor Refund Scheme, subject to reciprocity and a minimum claim amount, rather than the standard VAT 311 process used by registered businesses.

Can I amend a VAT refund application after submitting it?

Yes, you can amend a VAT refund application. Depending on the refund scheme and the stage of processing, the FTA may request additional information or supporting documents. If you've made an error, simply follow the instructions provided through EmaraTax or the relevant refund service to make the necessary amendments. 

‍