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Refund Policies for VAT levied on goods and services

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Refund Policies for VAT
Shuraa Tax Consultant November 19, 2019

Refund Policies for VAT levied on goods and services

The Federal Tax Authority (FTA) of the UAE made an official declaration regarding the refund scheme for VAT paid on goods and services connected with Expo 2020 (20 October 2020 to 10 April 2021) in Dubai. The Bureau Expo 2020 is a governing body responsible for taking care of the VAT refund procedure.

According to the statement released by the FTA, an official participant (any country or intergovernmental organization) holding a valid Expo trade license number will be eligible for a VAT refund under the following conditions:

  1. The participant has no intention of using more than 20% of the exhibition space
  2. It does not use the space for unofficial or commercial purposes at the Expo 2020.

Eligibility for the VAT Refund

An official participant can claim the VAT incurred on the supply or imports of goods and services used in-

  1. Constructing, installing, altering, decorating and dismantling of their exhibition space 
  2. Operating their exhibition space and any kind of presentation at the Expo 2020 site
  3. Connection with the actual operation of the official participant’s office, given that the value of goods and services that are claimable is not less than the limit set by higher authorities. 
  4. Relation to the personal use by the official participant’s Section-Commissioner-General, Section Staff and the Beneficiaries. 

The official participants irrespective of their registration for VAT have to obtain the Certificate of Refund Entitlement from the Bureau to claim the refund. Also, they cannot sell or transfer the goods and services on which the refund is to be claimed to other parties free of charge without the consent of FTA’s and Bureau’s established law and; without paying the taxes. The Bureau Expo receives the refund claims from the official participants, and if found correct, has to initiate a request to the FTA to refund the VAT amount. 

Conditions for VAT Refund

Any person or official participant who is eligible for claiming the VAT refund should be well versed with the procedures and verification requirements as set by two of the most important authorities- FTA and Bureau Expo 2020. In case an official participant does not fit the criteria of eligibility for claiming the VAT refund, the participant shall inform the Bureau about the same. 

Powers of the Federal Tax Authority(FTA)

FTA has the power to review or audit any action or activity of the Bureau Expo and make sure that the rules and procedures are being followed by all the official participants and the Bureau. If it finds any claim violating its set rules, it can cancel the ongoing VAT refund procedure. 

Get in touch with Shuraa Tax Consultants and Accountants to know more about the VAT Refund scheme as set under Expo 2020 Dubai. We are a group of certified tax agents and consultants who promise to hear all your queries and concerns related to finance and taxes.

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