All registered businesses must file a VAT return uae showing sales, purchases, output VAT collected, and input VAT paid during the tax period. Output VAT is the amount collected on sales, and input VAT is the amount paid to suppliers for purchases and expenses. Eligible input VAT can be deducted from output VAT Registration. After adjusting output and input VAT, there are two possible outcomes:
VAT Payable: If output VAT exceeds input VAT, the difference must be paid to the FTA VAT as VAT Registration payable.
VAT Refundable: If input VAT exceeds output VAT, the excess is VAT refundable.
How to Treat VAT Refundable Under UAE VAT Law
Taxpayers have two options for dealing with excess input VAT (VAT refundable):
Request a VAT refund from the FTA online
Carry forward the excess to subsequent tax periods to offset future VAT Registration uae payable and/or penalties. The excess can be refunded later at any time.
How to Claim a VAT Refund
If you have excess input VAT, the VAT return has an option to request a refund.
Enter “Yes” in the box marked “Do you wish to request a refund for the above amount of excess recoverable tax?” “The excess will be carried forward if you choose “No.”
After submitting the VAT return uae, complete the VAT Dubai refund form VAT311:
Login to the FTA e-Services Portal
Go to the VAT tab, then VAT Refunds tab
Click “VAT Refund Request”
Fill in the details in all applicable fields. Mandatory fields must be completed.
Key fields:
TRN, Legal Name, etc. – Auto-populated from your user profile. Ensure profile is accurate.
Total Excess Refundable Tax – Auto-populated from last VAT return.
Refund Amount Requested – Enter amount to refund, less than/equal to total excess.
Remaining Excess Refundable Tax – Auto-populated, available for future refund.
Late Registration Penalty – Auto-populated if applicable.
Once complete, submit the form. FTA will process per standard procedures. Email notifications regarding the status will be sent to you. Once approved, the refund will be issued and you will receive a confirmation email. The refunded amount can be viewed in Transaction History
