Sometimes a business pays more VAT on its purchases than it collects on its sales. This extra amount is called excess recoverable tax. In the UAE, you can ask the Federal Tax Authority (FTA) to pay it back to you, or keep it as credit for future VAT returns.
When Do Businesses Get a VAT Refund?
Common cases:
- Exporters whose sales are zero-rated but who pay 5% VAT on purchases.
- New businesses with big setup costs and low sales.
- Businesses that bought large assets, such as machinery or vehicles.
- Extra payments made to the FTA by mistake.
Refund or Carry Forward?
After you file a VAT return with excess recoverable tax, the balance shows as a credit in your EmaraTax account. You can:
- Carry it forward and use it against VAT due in later periods, or
- Ask for a refund to your bank account using form VAT311.
How to Claim a VAT Refund on EmaraTax
- Log in to EmaraTax and open your taxable person profile.
- Make sure your bank details are added and validated.
- Go to VAT and select the Refund Request (VAT311) form.
- Enter the amount you want refunded. It cannot be more than your credit balance.
- Upload the supporting documents.
- Submit the request and track it in your dashboard.
The service is free.
Documents Needed
- Output and input tax report for the period.
- Tax invoices and supporting documents for your largest purchases. Make sure they meet the tax invoice requirements.
- Bank IBAN letter.
- Proof of payment, if the claim is for an extra payment.
How Long Does the FTA Take?
| Case | FTA time |
|---|---|
| Complete application | 25 business days |
| Application needs an audit check | 55 working days from when all requested information is given |
If documents are missing, the FTA may ask for more. Then the time can start again. A clean, complete claim is the fastest.
New Deadline From 2026
From 1 January 2026, the Tax Procedures Law (as amended by Federal Decree-Law No. 17 of 2025) sets a time limit. You must ask for a refund, or use the credit, within 5 years from the end of the tax period when the credit arose.
For old credit balances, there is a transition period. If your 5-year period ended before 1 January 2026, or ends within one year of that date, you can still file a refund request within one year from 1 January 2026. In simple words: old balances from tax periods that ended in 2021 or earlier should be claimed by 31 December 2026. After that, they may be lost.
Common Reasons Refunds Are Delayed or Rejected
- Bank details not validated.
- Invoices missing key details like TRN.
- Input VAT claimed on blocked items, such as entertainment or personal use cars.
- Figures that don't match your VAT returns.
If the FTA review shows an error in a past return, you may need to file a voluntary disclosure. Penalties may apply. See VAT penalties in the UAE.
Should You Use a Tax Agent?
Large refund claims are often checked closely. An FTA-registered tax agent can review your input VAT and prepare a clean claim before you submit.
Frequently Asked Questions
How long does a VAT refund take in the UAE?
The FTA aims to process a complete application in 25 business days. If an audit check is needed, it can take 55 working days.
Which form is used for a VAT refund?
Form VAT311 on EmaraTax.
Is there a fee to apply for a VAT refund?
No. The service is free.
Can I lose my VAT credit?
Yes. From 2026, credit must be used or claimed within 5 years from the end of the tax period. Older balances from tax periods that ended in 2021 or earlier have until 31 December 2026.
Official Sources
- FTA: Tax Refund to Registered Taxpayers
- Ministry of Finance: Amendments to the Tax Procedures Law from 2026
Note: This article provides general information only and is not tax advice. Confirm the current requirements with the Federal Tax Authority or a qualified tax professional.