The Federal Tax Authority expects strict compliance, accurate documents and timely submissions for every refund claim, and errors or missing information cause rejections and delays. Avyanco reviews your VAT position, prepares the VAT311 and follows the claim through to payment.
A VAT refund is not automatic because you paid VAT. The expense must qualify for recovery and the evidence must meet FTA requirements.
Input tax is the VAT you pay on eligible business purchases and expenses. Output tax is the VAT you charge on taxable sales. When your eligible input tax is higher than your output tax, the difference can be refunded or carried forward under the applicable rules.
For example, if you report AED 80,000 of eligible input tax and AED 30,000 of output tax, the AED 50,000 difference is a recoverable balance. Avyanco checks that the credit is valid, reconciles it to your records and files the claim.
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A strict five-year limitation period now applies, so credit balances can no longer sit unclaimed in your tax account. A refund that is not claimed or offset within five years lapses permanently.
The FTA set a transitional window for legacy balances built up since VAT began in 2018. Unclaimed credits from the 2018 to 2021 tax periods must be claimed with a VAT311 form.
Filed on EmaraTax, with the supporting documents, and you receive a reference number to follow it.
The statutory time limit under Federal Decree-Law No. 16 of 2025.
The FTA reviews a complete application in 25 business days, with no guaranteed payment date.
Up to 55 working days from when you give all the information requested.
We check your outstanding balances and the deadline for each period, so no credit lapses and the claim goes in clean.
Businesses that make qualifying zero-rated exports can recover the VAT paid on their purchases and operating costs.
New companies can pay substantial VAT on equipment, professional services and setup costs before they make significant taxable sales. Registering for VAT helps eligible start-ups recover it, subject to FTA rules and documents.
Eligible capital purchases can create an input tax balance that exceeds the VAT you collected in the same period.
A temporary fall in seasonal sales or a large one-off expense can lead to excess recoverable tax.
Qualifying remaining credits may be considered under the refund rules. Any excess balance can be claimed as a final cash refund once the deregistration formalities are complete.
UAE nationals building a new private residence for their own use can claim VAT on eligible construction expenses. It is a separate route with its own evidence, eligibility and timing rules.
This service is for corporate entities, commercial businesses and UAE nationals building a home. Tourists claim their VAT at the departure kiosks run by Planet.
Invoices without the mandatory legal details, such as the buyer's name, a missing TRN or the wrong currency, hold claims up or lead to rejection.
Some VAT cannot be recovered at all. Claiming it puts the whole refund at risk.
Export documentation that does not match the sale fails to validate a zero-rated international supply.
Differences between the input tax a buyer claims and the output tax the supplier reports are flagged under the recent compliance verification rules.
The refund is held when the bank account holder's name on the IBAN letter differs from the registered trade name.
Unclaimed credits from 2018 to 2021 share one final deadline. Later years fall under the rolling five-year rule.
| Tax period year | Original period end | Standard five-year expiry | Final deadline to claim |
|---|---|---|---|
| 2018 | 31 Dec 2018 | 31 Dec 2023 | 31 December 2026 (transitional) |
| 2019 | 31 Dec 2019 | 31 Dec 2024 | 31 December 2026 (transitional) |
| 2020 | 31 Dec 2020 | 31 Dec 2025 | 31 December 2026 (transitional) |
| 2021 | 31 Dec 2021 | 31 Dec 2026 | 31 December 2026 (transitional) |
| 2022 | 31 Dec 2022 | 31 Dec 2027 | Rolling five-year expiry rule |
The transitional deadline applies where the five-year period had already expired, or would expire within one year after 1 January 2026.
Have unclaimed credits? We check your outstanding balances and the deadline for each period, and prepare the VAT311.
Both are allowed for excess input tax. The right choice depends on your cash needs and how old the credit is.
| Option | What happens | Watch out for |
|---|---|---|
| Claim the refund | Cash is paid directly into your bank account, which supports your liquidity | A VAT311, documents and the FTA's review time |
| Carry it forward | The credit offsets your future VAT payments | Older credits stay exposed to the five-year expiry limit |
Closing the business? Any remaining excess can be claimed as a final cash refund after the formalities: see our VAT deregistration service.
We run the claim from the first review to the payment, and then help you avoid the same problems next time.
We check your VAT returns, transactions and accounting records, and identify overpaid VAT you can recover.
We compile the tax invoices, customs declarations, payment proofs and contracts the claim needs.
We reconcile your input and output VAT so every figure matches your records and the refund amount.
We fill the official FTA refund form accurately and attach the essential documents.
We submit on EmaraTax, act as your contact with the FTA and answer its requests.
We monitor the claim and follow up until the refund is processed and paid.
We share best practice for VAT compliance and record keeping, to keep future claims smooth.
Licence, bank account, visas and tax handled by one named advisor, with government fees and our fee always shown separately.
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We handle the full refund, from the eligibility check and documents to FTA follow-ups. Our fees are structured transparently, as fixed engagement costs or based on the scale and complexity of your claim.
Incomplete records can lead to long audit requests or rejection. This is what the application needs, and we confirm your exact list before filing.
The FTA reviews a complete application in 25 business days, and up to 55 working days if the claim is audited. The time depends on how complete the claim is and any extra checks, so payment dates are not guaranteed.
Claiming pays cash into your bank account and supports liquidity. Carrying forward offsets future VAT payments but leaves older credits exposed to the five-year expiry limit.
Yes, but act quickly. Unclaimed credits from 2018 to 2021 must be claimed or offset before the transitional deadline of 31 December 2026, or they lapse.
No, it is not mandatory. A consultant helps make sure invoices, ledgers and documents meet FTA standards, which prevents rejections and audit problems.
A large claim makes a document review or verification query more likely. Reconcile all purchase invoices and payment proofs beforehand to reduce the risk.
Yes. While closing your tax account, any remaining excess recoverable tax is claimed as a final cash refund once the deregistration formalities are complete.
No. This service is for corporate entities, commercial businesses and UAE nationals building a new home. Tourists claim at the departure kiosks managed by Planet.
The FTA sets no statutory minimum for standard business refunds, though the claim must show a net position above zero. A separate scheme for foreign business visitors has a minimum claimable VAT of AED 2,000.
A VAT refund is a legitimate recovery that improves your cash flow. Tell us about your VAT position and any older credits, and we manage the claim from the eligibility check to FTA follow-up. No obligation.
Sources: Federal Tax Authority (FTA) · EmaraTax · Form VAT311 · Federal Decree-Law No. 16 of 2025 · FTA guide VATGRH1 (new residential property) · UAE VAT law and executive regulation.
Verification & independence: Avyanco Business Consultancy LLC is a private firm, independent of the Federal Tax Authority and every other UAE authority, and not affiliated with any UAE government agency. Deadlines, time limits, review periods and refund rules are set by the FTA, vary by business and case, and change over time. This page is general guidance, not tax or legal advice. Confirm your position with the FTA or with us before acting.
