VAT refund is the reimbursement of the VAT overpaid by the taxable person. When a taxable person incurs more input VAT than their Output VAT liability, they become eligible for claiming refund from FTA.
Taxable person is required to file periodic returns under VAT and make payment of net VAT liability. Net VAT liability is the difference between Output VAT liability and Input recoverable VAT. However, it is possible that taxable person’s input recoverable VAT exceeds the output VAT liability. In this scenario, taxable person has 2 options. First is to carry forward excess input VAT and set it off against future VAT liability when the output VAT liability exceeds the Input VAT of that tax period. Second is to claim refund from FTA.
Taxable person is required to claim VAT refund request in from 311 on online portal of FTA. Some information is already pre-filled based on returns filed by you. You have to fill out rest of the fields and file the request. After submission of the application, FTA reviews the application and notifies the taxable person of acceptance or rejection of the request in 20 days time. FTA will notify taxable person if application processing would take more time than 20 days. After approval of the request, refund payment is generally processed in 5 days time.
It is necessary to file the refund request with accurate and proper information, otherwise your request could be rejected leading to delay in getting the funds for the business. Or in case of unjust refund issued which is discovered at later stage, you can be subjected to penalties. We can help you in proper scrutiny of records, return, and request to be filed to ensure filing so that refund request is processed quickly and without any problem.