Some of the key highlights of guide issued on Refund of VAT connected with Expo 2020 by Federal Tax Authority
Who can claim a refund?
Offices of Official participants (“Participants”) of Expo 2020 will be incurring VAT on Goods and Services connected to the Expo 2020 are eligible to recover VAT through the following two methods
1. If the participant is not registered for UAE Vat then a refund request can be made through Bureau (Bureau Expo 2020 Dubai) by submitting a special refund application to the Bureau.
2. If the participant is registered for UAE Vat then it may be reclaimed as a normal process via UAE VAT return.
What Vat is reclaimable?
Participants can claim VAT on following five categories:
1. VAT incurred in direct connection with the construction, installation, alteration, decoration, and dismantlement of their exhibition space (must have a certificate of entitlement for this claim eligibility)
2. VAT incurred for the operation of exhibition space, presentation, and events within the Expo 2020 Dubai site (must have a certificate of entitlement for this claim eligibility)
3. VAT incurred for the actual operations, provided that the value of each good or service for which this claim is made is not less than AED 200
4. VAT incurred in connection with all operations, services, and activities provided for the purpose of participation in Expo 2020 Dubai, whether located within or outside the boundaries of the Expo 2020 Dubai site
5. VAT incurred on import of goods for the personal use of Participant’s Section Commissioner-General, Section Staff, and the Beneficiaries.
How do apply for a Refund?
The UAE government has introduced a separate VAT refund application process for the Participants not registered for VAT.. The Participants may apply for a VAT refund on the input tax incurred on the import of goods or services and for expenses directly related to Expo 2020.
• Step 1
Refund special refund application needs to be made to Bureau by the Office of the Official Participant on a periodic basis. The application should at least contain the following documents
a) Reference of certificate of Entitlement
b) Reference number and date of the previous refund claim
c) Tax invoices / Custom declaration for which claim is made
d) Details of goods and services to be provided to demonstrate that they are eligible for a refund
e) Few Declaration confirmations to be provided
• Step 2
The company should provide the following documents with the application
a) Copy of entitlement certificate
b) Copies of the tax invoices, including simplified tax invoices
c) Copies of customs declarations
d) copies of an employment ID that proves the employment of the personnel in respect of whom the VAT is being reclaimed.
e) copies of documents that prove the relationship of the relevant beneficiaries.
f) Bank account validation letter / certificate.
What are the eligibility criteria for a certificate of entitlement?
• Applicant must have a valid Expo 2020 license number
• Not more than 20% of the exhibition space or presentation is, has been, or is intended to be used for non-official or commercial purposes.
Certificate of entitlement needs to be applied via submitting a request form to the Bureau
When to apply for a refund?
Offices of the Official Participants not registered for VAT may apply as follows:
• Participant’s claims for a refund within 15 days of the end of the calendar month in which the total VAT value of the refund is AED 10,000 or more.
• Participant’s claims for a refund within 15 days of the end of the calendar quarter in which the total VAT value of the refund is AED 10,000 or more.
Offices of the Official Participants registered for VAT can claim a refund on their regular VAT return.
How much time does it take to get the refund?
• Within 20 working days Bureau will review and respond to the application.
• Once the refund is approved it will be released within 30 days from the approval date.
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