VAT Refund in UAE - YUGA

If you are a UAE Local National building a new residence in the UAE, you are likely to incur VAT on your Building construction costs.

 

You can follow the process outlined in VAT guide to file a refund claim with the FTA to recover the VAT costs.

 

WHO IS ELIGIBLE TO CLAIM?

The claim can be made only by a natural person who is a UAE national and a supporting documentation must be shown for example Family book.,etc,

WHAT IS REFUNDABLE VAT?

Expenses must relate to a new building which is used as a residence of the applicant and his or her family.

HOW TO APPLY FOR VAT REFUND?

  • Create an account on e-Services through eservices.tax.gov.aeVAT Refund in UAE
  • Create a new taxable person account
  • Apply using special refunds option
  • Apply for New Residence VAT Refund

WHAT ARE THE DOCUMENTS REQUIRED?

  • Copy of your Family Book
  • Copy of your Emirates ID
  • Document to proof building is occupied (for example: Water and electricity bill)
  • Construction contract and certificate of completion from the municipality

The refund Form must be sent to the FTA within 12 months from the date of completion of the newly built residence.

Refund requests with an expense certificate from the Emirates Development Bank will be processed according to an expedited procedure.

 

The additional documents which may need to be submitted to the Verification Body include.

• copies of the construction contract (including addendums).
• copies of the consultancy agreement (including addendums).
• copies of variation orders.
• copies of invoices that include returned items; and
• copies of credit notes.
• lump-sum tax invoices and proof of payments (for example, receipts) provided by the contractor and the consultant to the owner; and
• relevant tax invoices and proof of payments (for example, receipts). Tax invoices should include the name of the owner (i.e. the applicant), valid TRNs and the correct VAT amounts.

Simplified tax invoices will not be accepted for the purposes of claiming refund.

Tax invoices issued in the name of a related party / consultant / contractor / agent, must state that they are for the use of the owner and reflect the details of the building (including the plot number) for which the costs were incurred. Alternatively, the tax invoice may be accepted if it contains all of the following:

  1. The full name of the UAE National on whose behalf the expense was incurred.
  2. Signature and Emirates ID number of the UAE National as acknowledgement that the cost was incurred on his/her behalf; and
  3. Full plot number or street address of the new residence. Note that, if the plot number is used, it should be clearly indicated as such. Merely stating numbers without a description would not be accepted.


The Verification Body may request additional documentations, or original of documents, to complete verification procedures. Reviewing the documents and making payment might take up to 20 business days from the date all required documents have been submitted.

 

FOR MORE INFORMATION, CONTACT US:

Phone : +971 52 1952 532 / +971 4 240 1110

Mail-Id: info@yugaaccounting.com

Website: www.yugaaccounting.com

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