It is required that the company lists all the points of sales and purchases along with the input and output VAT paid over a month. Input VAT is the amount of tax you pay to your suppliers while output VAT is the tax collected on company's sales.

Calculation of VAT refunds and payments can be troublesome if one lacks sufficient knowledge about the taxation rules. Moreover, when one comes across the myths that roam around in the air regarding the matter, it adds more towards the confusion.

Hence, this article aims to clarify the concept of VAT refund along with bursting myths and stating verified facts about VAT refund in UAE.

What is a VAT refund?

The terminology” VAT Refund” becomes valid when the input VAT exceeds output VAT. In the following scenario, the remunerator either requests a VAT refund or asks o credit the VAT amount to subsequent tax periods.

Hence, by considering the services of Best VAT consultancy in Dubai, you can make sure that all your VAT related worries are sorted out. Moreover, this article is going to guide you about the myths and facts about VAT.

Myths about VAT refund in UAE

As fascinating as it may sound but VAT refund is real. As soon as people have heard about the “VAT rebate” policy; lots of true and false stories have been roaming around. This, therefore created the urge to write about all that has been roaming around along with the original information.

Some common myths about VAT are as follows:

• VAT can be claimed by every customer
• Refund is applicable on the excess of all amounts paid or payable over amounts received or receivable
• The VAT refund automatically implies in the case of excess VAT paid over obtained.
• Any amount of VAT money can be refunded by foreign companies.
• Only registered person can get benefit out of various VAT schemes available under UAE VAT law.

facts about VAT refund in UAE

As an answer to all the myths, here are the straight points that aim to provide clarification on the above-stated myths:

• Every customer cannot claim VAT refund as end customers are not allowed to request input VAT refund.
• Amount that is paid or is payable after six months of supply date isn’t eligible for VAT refund
• You need to apply for a Vat refund, and it isn’t an automatic process.
• A minimum VAT amount of AED2,000 (USD544) can be claimed.
•  VAT for UAE nationals, refund scheme can be availed by every individual who wants to build new residencies in UAE. Thus, registration status doesn’t matter.

Final thoughts on VAT!

A VAT is a consumption tax that has to be paid by both consumers and suppliers to the government. Abiding by the VAT rules and regulations can undoubtedly keep you on safe lines. However, not being able to pay VAT can lead you to dangerous waters.

Thus, it is recommended to opt for the best VAT consultancy services near you to help you more with VAT registration, refund, and processes!

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