VAT Refund for Exhibitions and Conferences

VAT refund Dubai allows suppliers of some services to reclaim the VAT amount that is the amount charged to the international clients for the services being supplied. The Federal Tax Authority has published a fresh User Guide which includes all the information about the VAT refund procedure in Dubai for both the suppliers and customers.

It also states the terms and conditions, certain criteria, and scenarios under which one can apply for this VAT refund. The advantage on part of the international customers is that they would not need to bear the cost. The document released by FTA regarding the

VAT Dubai refund mainly focuses on the following two services;

vat refund

  • Giving suppliers the right and opportunity to employ spaces for the conduction of exhibitions and conferences.
  • Giving the customers the right and the opportunity to access, join and be a part of the exhibitions and conferences.

The Conditions

The user guide for VAT refund Dubai states that the following conditions should be met in the first place before applying for a refund;

  1. This is only applicable on exhibitions and conferences supplies, i.e, either giving the right to employ spaces for the conduction of exhibitions and conferences, or the right to reach, join and be a part of the exhibitions and conferences.
  2. The customer who is enjoying these services lacks any fixed establishment or place of establishment in Dubai.
  3. The customer has no previous registration for VAT or there is no requirement for the customer to be registered with it.
  4. A written copy of the declaration is a must to have for the supplier from the customer that he/she has no previous registration for VAT or there is no requirement for the customer to be registered with it.
  5. The supplier hasreceived the VAT amount from the customer.

After meeting the above conditions, one can move on to the next procedure of VAT refund Dubai and refund the VAT amount by the tax period during which the supply date was set. Moreover, the requested amount can be less than or the same as the total charged amount of VAT.

The Scenarios

The document places the following two scenarios in front of the readers that includes two services as supplied by the suppliers;

  1. In scenario one, where the supplier provides the service of employing a place for the conduction of an exhibition or a conference, the supplier has to have the license and registration of the Federal Tax Authority. The FTA license will stay active for one year if the supplier owns the venue. In case if the supplier does not own the place but is given the right to provide the place for exhibitions or conferences, the issued license will stay active for a period in check with the period allowed by the original owner of the place.
  2. In scenario two, where the supplier provides the service of giving access and the right of participation in an exhibition or a conference, the supplier needs to acquire a license for the particular exhibition or conference to provide these services to customers. There is a need to request this license before the actual event. Moreover, the license will expire after the particular event. One has to acquire a license for each exhibition or conference in this case.

Eligibility Criteria for Both Scenarios

Following is the summary of eligibility criteria mentioned in the User Guide document for VAT refund procedure Dubai;

For Scenario One (providing the venue for the exhibitions and conferences);

  • The FTA registration for VAT is a must for the supplier of the services.
  • A registered place of residence is a must for the supplier.
  • The supplier should have a registered business name under which he/she is providing these services.
  • A trade license in Dubai is a must to have to provide these services.
  • The supplier must own the venue or hold the right to rent by the original owner.
  • To ensure that the place can be provided for an exhibition or a conference, the supplier must acquire a license from the relevant government organization.

For Scenario Two (providing the access to join the exhibition or conference);

  • The exhibition or conference should last for a week or less than that.
  • The supplier should acquire a license to provide these services from the relevant government organization in Dubai.
  • Registration with FTA is mandatory in case if the supplier is a resident of the country.
  • A license for event management is a must to obtain from the relevant government organization.
  • In case if the supplier is not a resident of the country, he should have proof of being established in his Dubai business.

In summation, the document of the User Guide contains all the information and answers to questions that might arise.