As a small business operating in the UAE, we are sure you have come across many situations that affect you on a daily basis. One of the most common complexities that many businesses face is when the VAT charged on goods purchased (input tax) is more than the VAT on the amount generated through sales of products or services (output tax).
This definitely looks like a one-off situation, but if you actually look more closely at the numbers, it affects nearly 90% of businesses in the UAE. Most small businesses have no clue how to recover the tax difference amount that arises in such situations, which is why we have put together a guide on how this works practically when you log in to the EmaraTax platform
How to Use EmaraTax to Claim Direct VAT Refunds
So, let us deep dive into the steps for reclaiming VAT from the EmaraTax platform:
- Step 1: Login to your EmaraTax account and choose user type: Start by logging in to your EmaraTax account using your login credentials or UAE Pass. Once you have logged into your profile, proceed to choose your user type. Since you are eligible to be taxed according to the provisions of the UAE VAT law, choose the Taxable Person tile in the options displayed on the screen and click “Proceed” to confirm your selection.
- Step 2: Open the Taxable Person homepage and Select the VAT module. You will then be taken to the Taxable Person home page, which has your profile displayed. Click on the ‘view’ button to open your Taxable Person profile. Once you have opened your Taxable Person profile, click on the VAT module on the ‘left-side bar’.
- Step 3: Click on the VAT 311 Tile for Refund Requests: You will have two tiles displayed on your screen, one displayed as ‘My Filings’ and the other mentioned as VAT 311. Select ‘Create New’ on the VAT 311 tile to create a new refund request, and you will get a screen with guidelines outlining the required templates, documentation, criteria, and the expected time to complete the refund request. Mark the checkbox to confirm that you have read and understood the instructions and guidelines, and click on the ‘Start’ button to start the process.
- Step 4: Verify your personal information and other details: As you now proceed with your request, you will be asked to verify your personal information and your bank details to ensure they are accurate when processing the request. Make sure that it is accurate prior to the submission of the refund request, as incorrect information may lead to payment failure.
- Step 5: Refund your desired VAT amount: Once you have verified your information, proceed to choose the VAT return that contains the excess amount. Enter the refund amount and click ‘Add Supporting Details’ to obtain a breakdown. Next, upload a filled template and download the auto-populated table. Ensure to edit and provide further refund details, indicating any out-of-scope supplies, and submit your contact information. Don’t forget to upload the required documents and download the filed amounts for the selected tax period, providing a detailed breakdown for the chosen line item. Add transaction details and agree to the stated terms. Finally, submit the refund request and make a note of the application number for future reference.
Always remember, you can access the refund request from the VAT 311 tile within the VAT tax module.
With the introduction of the Emaratax platform, the authorities have made it convenient for businesses to file returns and apply for refunds, if any. Small businesses in UAE may still not be aware of the procedures they have to follow, but these issues can be solved by approaching expert tax consultants like AB CAPITAL, who can meet your tax needs at any time.
Choose the Best Tax Firm in the UAE!
Now that you are well-equipped with the knowledge to claim your direct VAT refunds from EmaraTax, feel free to proceed confidently and start the process. However, if you do encounter any challenges or need expert guidance throughout the refund process, AB CAPITAL SERVICES is always here to help. Our team of professionals can provide you with comprehensive support and ensure a smooth and successful VAT refund experience and further tax assistance. Do not hesitate to reach out to us for assistance at any stage of the process or for tax consultation.
