UAE VAT reclaims

The United Arab Emirates has issued guidance on its plans to allow non-resident companies to reclaim UAE VAT suffered. This follows the introduction of a 5% VAT regime at the start of 2018.

Claims will be on a calendar year basis. They may be filed in March of the following year. There will be a minimum claim threshold of AED 2,000. Claims for 2018 invoices may be made in April 2019. It has yet to be confirmed if original paper VAT invoices must be included with the claim, and therefore should be retained for the time being.

Only businesses without a fixed establishment in the UAE may use the VAT recovery system, or not have a non-resident VAT registration. They will also be obliged to be VAT registered in their home country, which in turn must have a VAT reciprocity agreement with the UAE.