Brief Overview
Refund Scheme
Suppliers can claim VAT refunds on services to international customers, effectively removing VAT costs for these customers.
Qualifying Services
Granting rights to occupy space or access exhibitions and conferences.
Contents
Licensing process, service requests, tax returns, and registration requirements.
Legal Basis for Refund Scheme
No (8) of 2017 on Value Added Tax, Article 75(5)
No. (26) of 2018 on VAT Refund for Exhibition and Conference Services
How the Refund Scheme Works
Supplier charges 5% VAT on services
Supplier refunds VAT amount if conditions are met
Supplier does not collect VAT from international customer
Conditions for VAT Refund
Must be Exhibition and Conference Services
No establishment or VAT registration in UAE
Customer confirms non-resident status
Customer has not paid VAT to supplier
Supplier Licensing Scenarios
Eligibility for Licensing – Scenario A
Must be registered with FTA
Must have place of residence in UAE
Must be in business of renting space for exhibitions/conferences
Must own or have authority to rent space
Eligibility for Licensing – Scenario B
Seven days or less
Must have permit from competent government entity
Must be FTA registered with valid trade license
Must provide proof of overseas establishment
Required Documents – Scenario A
Supplier’s Licence Request Form to Grant the Right to Occupy Space
Valid and relevant to business type
Proof from competent government entity
Signed document describing business activities
Required Documents – Scenario B
Licence Request Form for Event Organiser to Grant Access to Events
From competent government entity
Showing price and event name (if available)
For non-UAE resident organizers
License Validity
License Renewal (Scenario A)
One month before expiry for one-year licenses
Use same form as original application
Notify FTA if trade license expires
Documents Required from International Customers
Stating no UAE establishment or VAT registration
Information on customer and supplier
Details of requested services
Specifics of the Exhibition/Conference
Processing Customer Requests
Obtain declaration from International Customer
Charge VAT and show refund on invoice
Do not collect VAT from International Customer
Include in Tax Return and claim refund
Record Keeping
Retention Period
Keep all documentation for five years from end of tax period
Documents to Retain
All records issued and received under the scheme
Filing Tax Returns
Include in Tax Return for relevant period
Claim refund in same Tax Return
Equal or less than VAT charged on services
Registration Requirements for International Customers
Must not be resident or registered for VAT in UAE
Cannot make taxable supplies during event
No minimum threshold for non-resident suppliers
Declaration for International Customers
Name, position, business location
Name of exhibition/conference, purpose
No UAE establishment, not VAT registered, no planned supplies
Conclusion
Follow guidelines carefully to ensure proper VAT refunds
Maintain accurate records for all transactions
Stay informed about any changes to VAT regulations
Submit your enquiries to MBG Corporate Services. We will respond as soon as possible.
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