Are You Still Waiting for Your VAT Refund? Here’s How to Speed It Up
Delays in VAT refunds are one of the most common frustrations faced by businesses in the UAE. Whether you’re a newly registered taxpayer, an exporter with zero-rated sales, or a company claiming input VAT on capital costs, the waiting period can stretch for months, affecting your working capital and creating operational roadblocks.
But the good news is — VAT refunds can be accelerated if you know how to structure your application correctly, pre-empt FTA queries, and eliminate compliance gaps. In this blog, we break down a practical and proven roadmap for faster, smoother refund processing in the UAE.
The Real Cost of a Delayed VAT Refund
A delayed VAT refund is not just a compliance issue — it’s a cash flow killer. For capital-intensive sectors like construction, logistics, and trading, input VAT on goods and services can easily run into hundreds of thousands of dirhams every quarter. If your refunds are stuck, that’s money locked in the system.
It can also distort your reporting, impact audit trails, and lead to FTA scrutiny. Worst of all, many businesses are unaware that their refund claims are non-compliant or incomplete, which only invites rejection or delay.
Why Refunds Get Delayed
From our experience across 100+ refund cases, here are the most common reasons refunds get delayed or rejected:
• Incorrect VAT positions – claiming input tax on non-recoverable expenses (e.g., personal travel, staff perks, entertainment)
• Missing documents – no valid tax invoices, customs exit proofs, or supporting credit notes
• Reconciliation mismatches – differences between the VAT return and general ledger or trial balance
• FTA red flags – first-time refund claimants or unusually high refund amounts often trigger audits or data requests
These issues are preventable — but they require pre-submission attention, not post-submission explanations.
What to Do Before Filing Your Refund Claim
There are five key things every business should do before clicking “Submit” on the FTA refund form:
1. Conduct a complete VAT return review
Recheck return values, reconcile with financials, and review tax codes for correct classification.
2. Validate your documentation
Ensure invoices are valid&customs documents are in order.
3. Resolve prior compliance issues
If you’ve had penalties, non-filers, or previous refund rejections, fix them first.
4. Exclude ineligible input VAT
Remove expenses related to blocked categories such as entertainment, donations, or exempt supplies.
5. Prepare a variance summary
Include a simple document explaining major fluctuations or refund surges to reduce the likelihood of queries.
What to Include in Your VAT Refund Application
An effective VAT refund application is not just about filling VAT Refund Application. You must also attach the following:
• Business activity summary with justification for refund
• VAT transaction template
• Top 5 invoice samples across standard-rated sales, zero-rated sales, and standard-rated purchases
• Bank account IBAN confirmation letter
• Supporting documents like shipping proofs, customs declarations, and supplier contracts
Ensure all attachments are properly labelled and submitted in the correct format as per FTA guidelines.
Respond Quickly to FTA Queries
Once submitted, the FTA may raise queries asking for clarifications or additional documents. Responding within 5 working days is critical to avoid de-prioritization or rejection.
Typical FTA queries may include:
• Justification for large refunds
• Proof of export for zero-rated claims
• Clarification on supplier TRNs or input tax classification
Your ability to provide concise, complete responses can make a significant difference in approval timelines.
Why Professional Support Speeds Up the Process
Even if you have a strong internal finance team, VAT refunds are highly documentation-sensitive and demand specialized knowledge of FTA practices.Experienced consultants can help you:
• Review your claim before submission
• Correct past errors through voluntary disclosures
• Pre-empt audit risks and reduce exposure
• Liaise directly with the FTA for timely follow-ups
At Stratify Consulting, we’ve helped clients in real estate, manufacturing, education institutions, exporters, schools e-commerce, and logistics recover millions in blocked VAT refunds with full compliance and no delay.
Our “No Refund, No Fees” Promise
We know the refund process can feel uncertain — that’s why we only charge after your refund is approved. Our team of FTA-approved tax agents and compliance experts provides end-to-end VAT refund assistance, including:
• Pre-filing VAT health check
• Documentation preparation and verification
• FTA portal submission
• Responding to queries and follow-ups
• Voluntary disclosures where needed
If you’ve been waiting too long for your refund, let’s fix the gaps and fast-track the process. Let’s turn your VAT refund from a waiting game into a win. Reach out to our team for a confidential discussion:
