VAT REFUND USER GUIDE OF JULY, 2018

The FTA has issued a VAT refund user guide in the month of  July 2018 to explain the process which is to be followed along with the forms and the information which needs to be provided when applying for a refund to the FTA.

The guide states that every taxable person is under an obligation to file a VAT return for summarizing the VAT which is due to the FTA for the tax period. It explains that if the input tax is greater than the output tax on  VAT return then the taxable person can request a VAT refund after submitting the VAT return or later when credit is overdue to them. This claim can either be submitted by a taxable person or another person who has the right to do so on behalf of the taxable person.

It also imposes an obligation on the FTA to review the claim made by a taxable person for the refund of excess refundable tax and notify about the same within 20 business days of its decision to either accept or reject the refund claim. The FTA is also required to notify the applicant if in case it requires a longer period of more than 20 business days.

The guide further provides with the process which is to be followed:

• The first step under this is to Login using your username and password to FTA e-Services Portal. The refund form is to be accessed by going to the VAT tab and then to the “VAT Refunds’ tab. The form is to be accessed under request VAT refund by clicking the VAT Refund Request.

• The second step is the user filling each field on the form.

 The return form would be processed within 20 business days of the submission and the money will be refunded within 5 business days.