Foreign Businesses, Don’t Miss Your 5% VAT Back

A Once-a-year Opportunity for Foreign Businesses to Recover UAE VAT

1. Who Qualifies
2. What You Can Claim
3. Documentation Required
4. Documentation Required

5. Mistakes to Avoid

6. How Stratify Helps Common

In today’s globalized economy, companies regularly send employees abroad for business meetings, trade shows, or client work. While these trips often generate value, they also come with added costs not least the 5% VAT levied on goods and services in the UAE.

However, what many foreign businesses may not know is that the UAE allows non-resident companies to reclaim the VAT incurred on eligible business expenses under its Business Visitor Refund Scheme. This little-known opportunity can lead to substantial cost savings — but only if you understand the rules and plan your claims carefully.

In this article, we explore the UAE VAT refund mechanism for non-resident businesses, eligibility criteria, claimable expenses, and key considerations to ensure a successful refund.

What is the UAE Business Visitor VAT Refund Scheme?

The Federal Tax Authority (FTA) permits foreign businesses — those with no fixed establishment or VAT registration in the UAE — to recover the VAT paid on qualifying business expenses. These refunds are submitted annually for the preceding calendar year during the application window of 1 March to 31 August.

This is particularly relevant for international companies attending trade fairs, client visits, or meetings in the UAE, who typically incur VAT on hotels, meals, taxis, consulting services, and procurement. If eligible, the business can recover the full 5% VAT — a significant reduction in cost of doing business in the UAE.

Who Can Apply? – Key Eligibility Conditions

To qualify for a UAE VAT refund, the foreign company must meet all of the following

No Establishment in the UAE or Implementing GCC

The business must not have any office, fixed place of business, or tax registration in the UAE.

Legally Operating Abroad

The business must be actively trading in its home jurisdiction and must submit a Tax Compliance Certificate (or similar proof of tax registration) from its local tax authority. This certificate must be attested by the UAE Embassy in the home country.

Reciprocity with UAE

The business’s home country must offer a reciprocal VAT refund arrangement to UAE companies. Fortunately, this includes many countries such as the UK, Germany, France, Saudi Arabia, New Zealand, and South Africa. (If a country is not yet listed, it may apply through its finance ministry.).

Not a Government or Tour Operator

Government entities and non-resident tour operators are excluded. Also, if the business has made taxable supplies in the UAE, it would not qualify unless those are under reverse charge.

What Expenses are Eligible for Refund?

The UAE VAT refund scheme allows businesses to recover VAT on expenses that are strictly business-related and were subject to the standard 5% VAT rate.

Common Eligible Expenses Include

Hotel stays and business accommodation
Meals and refreshments related to business
Event or conference participation fees
Marketing and promotional costs
Professional, consulting, or legal services
Office supplies and equipment used for business
Fuel and local logistics expenses related to business

Excluded Expenses Include

Entertainment or leisure activities
Alcohol or personal consumption
Public transport (usually zero-rated in the UAE)
Taxi fares
Any non-business-related or mixed-use expenses
It’s important to remember: if a UAE-registered VAT business cannot recover an expense, neither can a non-resident foreign business.

Key Steps and Timeline

Claiming a VAT refund is a once-a-year opportunity. Here’s how to do it right

Plan Your Claim Period: Refunds apply to a full calendar year (e.g., 1 Jan – 31 Dec 2024).
Submit on Time: The submission window is open from 1 March to 31 August of the following year (e.g., for 2024 claims, apply between 1 Mar – 31 Aug 2025).
Keep Your Documents: Original invoices, proof of payment, and the attested Tax Compliance Certificate are mandatory.
Expect an Audit: The FTA may inspect your documents, so ensure accuracy and completeness in all your filings.

How Stratify Can Help

The UAE VAT refund scheme for non-resident businesses presents a strategic opportunity to optimize your international business costs — but navigating the eligibility rules, documentation standards, and submission process can be complex.

At Stratify Consulting Group, we specialize in helping foreign companies successfully reclaim UAE VAT. From assessing your eligibility and reviewing your documentation to preparing and filing your application, our team ensures your claim is accurate, compliant, and maximized.

Let Stratify help you recover what’s rightfully yours — efficiently and transparently.