Claiming VAT Refund on Goods and Services Related to Expo 2020 Dubai
UAE VAT law stipulates specific steps to be followed by Expo 2020 participants with respect to their claim for any VAT refund on expenses incurred by them during their participation in the exhibition. The participants should consider the various aspects of VAT in UAE for effective tax planning and compliance with regulatory requirements.
Which all expenses are eligible for claim of VAT refund by Expo 2020 participants?
The eligible expenses for VAT refund by Expo 2020 participants are categorised as below as per the tax regulation:
- Costs for building up and changes made by the participants to the exhibition space
- Costs for running of exhibition space or any presentations/events in Expo 2020 site
- Operating expenses of the participants where VAT reclaim is more than AED 200
- Expenses by participants for participation in Expo 2020
- Personnel expenses of the participant’s allowed staff/beneficiaries as defined by FTA
What is certificate of Entitlement and how is it related to claim of VAT refund by Expo 2020 participants?
In case any Expo 2020 participant wants to reclaim the VAT incurred on expenses falling under the Category A or B as listed above, it should hold a Certificate of Entitlement as issued by the Bureau of Expo 2020 Dubai. There is a separate application form to obtain this certificate and the same has to be duly filled and submitted to the Bureau along with the set of documents as stipulated by the regulation. Also, it is to be noted that such certificates are issued only to the official participants of Expo 2020 holding valid Expo license and such participants should ensure that not more than their 20% of exhibition space is used for non-official or commercial purposes.
Steps involved in the process of claim of VAT refund by Expo 2020 participants
The process for reclaim of VAT refund by Expo 2020 participants may differ depending on whether the participants are UAE VAT registered or not. In case if the participant is already a UAE VAT registered entity, then the reclaim for a VAT refund on eligible expenses can be made through its regular VAT returns. On the other hand, if the participant is not VAT registered, then VAT refund can be claimed through a special application to the Bureau Expo 2020 Dubai. The requirement for VAT registration with FTA will again depend on the volume of taxable supplies or imports of the entity, if present, reaching the mandatory threshold limit of AED 375,000.
Documents to be maintained for the process of claim of VAT refund by Expo 2020 participants
Essential documents to be maintained by Expo 2020 participants with respect to the tax refund claim are below:
- Expo license
- Certificate of entitlement for applicable participants
- Underlying valid tax invoices and other supporting relating to the amounts reported in the VAT return or refund application
- Customs documents relating to the import of goods
- Documents that prove the employment of and relationships with staff/beneficiaries of participants
- Bank account validation letter from bank, in case of refunds
Apparently, maintenance of additional documents can be required by the Bureau Expo 2020 Dubai or FTA on review by them on a case to case basis.
How CDA can assist you in your VAT refund claim and other Expo 2020 related activities?
With the knowledge of serving various clients in connection with Expo 2020, CDA can offer to you value-adding customized consultancy services. We can support you in several compliance activities relating to Expo 2020, such as obtaining license, registration with FTA, determining the eligibility of input tax recovery, application for Certificate of Entitlement, Filing of VAT returns, Filling of application for VAT refund, correspondences with regulatory authorities and timely completion of respective documentations.
This brings us to the completion of our discussion on refund of VAT paid on goods and services related to Expo 2020 Dubai. Still, you need expert advice on refund of VAT paid on goods and services? Feel free to contact us, so that we can provide you with our expert advice and recommendations on various challenging areas within your tax and accounting functions.