Middle East Tax Alert | UAE | Excise Tax Refund For Non-registered Businesses

The Federal Tax Authority (FTA) in the UAE has released three comprehensive user manuals detailing the procedure for non-Excise registered businesses to claim a refund of Excise tax incurred on goods which are directly or indirectly exported outside the United Arab Emirates (UAE).

This procedure aligns with recent amendments to the executive regulations of the Excise Tax Law that permit such refunds.

Step 1: Upload business details on the Emaratax portal

Businesses must first upload their details on the Emaratax portal. The required information inter alia includes:

1. Trade license
2. Business contact details
3. Ownership details and authorized signatory details
4. Identification proofs (e.g. passport, Emirates ID)
5. Bank details (e.g. IBAN, bank name)

For further guidance, please refer to the user manual here.

Step 2: Submit local purchase declaration (EX203H)

Next, the business must submit a local purchase declaration (EX203H) detailing the purchases made. Required details inter alia includes:

1. Tax or commercial invoices issued by the seller, showing sales prices, quantity, total amount due, etc.
2. Payment receipt issued by the seller
3. Tax or commercial invoices received by the seller when he purchased the Excise goods
4. Payment receipt received by the seller when he paid for the Excise goods he purchased
5. If the seller is registered for Excise, the Excise tax declarations submitted by the sellers to the FTA, confirming that the tax was accounted for
6. Details of Excise goods (e.g. GTIN, HS Code)

Further instructions are available in the user manual here.

Step 3: Submit the refund application (Form 311)

Lastly, to file the refund application, businesses must submit Form 311, ‘Non-Registered Business Refund'. Required documentation inter alia includes:

1. Commercial evidence proving export (invoice, packing list, bill of lading, customs declarations)
2. Official evidence such as a stamped exit certificate

Detailed instructions can be found in the user manual here.

Important Considerations

The refund process is elaborate, requiring careful review of all documents. A four-eye review process is recommended before submission and businesses should also be prepared for potential interactions with the FTA during the verification process. To avoid delays, it is advisable to allocate sufficient time for internal processing or consider outsourcing this task.

Originally published 16 August 2024

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.