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When you apply for a VAT refund, the Federal Tax Authority (FTA) must decide and notify you within 20 business days of submission, or another period if it tells you. Repayment must start within 5 business days after the decision notice. Source: Federal Tax Authority, Tax Procedures Executive Regulation Article 26, checked .
When you end up with a refund
A refund arises when the input tax you can recover is higher than the output tax you charged in a period. Typical cases: a new business buying stock or fitting out premises before sales build up, a business with mostly zero rated sales, or a large one-off purchase. Your VAT return shows the excess. The refund request is a separate application.
The timeline
| Step | Time |
|---|---|
| FTA decides and notifies | 20 business days from submission |
| Repayment starts | 5 business days after the decision notice |
Source: Federal Tax Authority, Tax Procedures Executive Regulation Article 26, checked .
When a refund can be held
The FTA may defer a refund until outstanding returns are filed. The simple fix is to file every missing return before you apply. If you also owe tax or penalties, expect questions on the account.
The 5 year limit
From , Federal Decree-Law No. 16 applies a 5 year limit to requests to reclaim excess refundable tax after reconciliation. The same changes allow the FTA to deny input tax if a supply is part of a tax evasion arrangement. Source: Federal Tax Authority, Ministry of Finance announcement on VAT law amendments, checked . Do not leave a credit sitting in your account for years.
What to prepare
- Tax invoices for every purchase claimed, in your company name and with your TRN
- Import documents where VAT was paid at customs
- A reconciliation of the credit to your returns
- Bank details held on EmaraTax
Keep records as the rules require. The general period is 5 years after the tax period. See record keeping rules. A firm can check the file before you submit, which cuts the chance of a query.
If you are closing the business, a final return and a refund can overlap. See VAT deregistration.
Practical tips
Treat a refund like a claim that someone will read. Put the support in order before you submit. A reviewer who has to ask for an invoice adds days. Name files clearly and match the totals to the return.
Check the bank details in your EmaraTax account before applying. A repayment sent to an old account is a delay you can avoid.
If you expect a refund every period, say so to your accountant. Repeat credits get more attention, and a short note on why they arise saves time later. A mostly zero rated exporter and a start-up in a build phase are different stories, and the explanation should be ready.
What the facts do not say
We do not hold a confirmed rule on interest on late refunds, on minimum refund amounts or on which supporting documents the FTA asks for in each case. Check the current rule on the FTA site before you plan around any of those.
If the answer is a no
If the FTA rejects or reduces a refund, the notice gives the reasons. Read them before you reply. Often the cause is a missing invoice, a mismatch with the return or an unfiled period. Fix the cause and ask a firm how to respond within the time allowed. We do not hold the formal objection deadlines, so check the current rule on the FTA site.
Keep your own tracker of open credits, with the period, the amount and the date you applied. It makes follow-up simple and gives your accountant a clear starting point each quarter.
