How Certificate of Entitlement Help Expo 2020 Participants in Reclaiming Tax?

Ever since the announcement in the year 2013 on the hosting location, Dubai has been eagerly looking forward to welcoming the Global exhibition in 2020. To add on to one of the pandemic impacts, the event has been postponed to start by October 2021. In spite of the rescheduling to the year 2021, the authorities have decided that the name will be retained as Expo 2020 keeping up the charm and cheer around the entire occasion of this international happening. As the pavilions and galleries are getting ready, various participating countries and organisations across the world are rolling up to engage as exhibitors in the Expo 2020 Dubai. Apparently, VAT expenses are incurred in connection with the activities of participants in installing their respective exhibition spaces and managing them. FTA has issued explicit guidelines this year for Expo 2020 participants to clarify the refund procedures for such expenses.

In the following post, we are going to share how an official participant of the Expo 2020 Dubai must apply for a Certificate of Entitlement before attempting to reclaim VAT.

So, what is Certificate of Entitlement? How this will help Expo 2020 participants in reclaiming tax?

Let us find out the answers to these questions and discuss Certificate of Entitlement for Expo 2020 Dubai.

Which all expenses of participants in Expo 2020 are eligible for a VAT refund?

To be eligible for VAT refund, corresponding expenses of participants are classified into below five categories:

• Expenses directly relating to building up of and changes made to the exhibition space
• Expenses directly relating to the running of exhibition space or conducting any presentations/events in Expo 2020 site
• Expenses relating to actual operations of the participants where VAT reclaim is more than AED 200 
• Expenses relating to any activity with the purpose of participation in Expo 2020
• Expenses for the personal use of the participant’s allowed staff/beneficiaries as defined by FTA 

What is Certificate of Entitlement?

For all the participants who want to reclaim the VAT incurred on any expenses as defined above as Category A and B, they should first apply and obtain the Certificate of Entitlement from the Bureau Expo 2020 Dubai. The certificate reference number should be mentioned in the VAT reclaim applications in connection with the Category A and B expenses.

Are there any eligibility criteria for obtaining the Certificate of Entitlement?

Following conditions to be met before applying for the Certificate of Entitlement:

• Participant should hold a valid license number of Expo 2020
• Space occupied for any non-official or commercial purposes should not be above 20% of total exhibition space

How can a participant apply for Expo 2020 Certificate of Entitlement?

There is a specified request form which is to be filled in detail by the participant and to be submitted by email to the Bureau along with the supporting documents as required. There is no fee charged by the bureau for the application and for granting the certificate.

What are the procedures for reclaiming the VAT expenses of Expo 2020?

For the participants who are registered VAT in UAE, the refund claim of VAT expenses relating to Expo 2020 can be made through their regular VAT returns along with their any other general input tax recoveries. It shall also be noted that in case if the purchase value of the participant’s supplies/imports in UAE which are taxable exceeds or is expected to exceed AED 375,000, registration for UAE VAT is mandatory. Participants who are not VAT registered in UAE can reclaim the VAT expenses of Expo 2020, through a special refund application, in the format along with the supporting documents as prescribed by FTA. The refund application can be submitted to the Bureau and on approval, reclaimed amounts will be refunded by FTA.

What will be the frequency for the refund claim for VAT expenses of Expo 2020?

For UAE VAT registered participants, the frequency will be the same as their regular VAT return. For others, the due date will be within 15 days after the calendar month in which VAT reclaim amount is above AED 10,000 or more. 

Also read, How Vat Will Affect The Newly Registered Companies In The Light Of Expo 2020

If the VAT reclaims amount is less than AED 10,000, then the due date will be within 15 days after the calendar quarter. If any eligible expenses are missed out during one refund application, the same can be included in the next refund application. 

Consultancy services of CDA in connection with Expo 2020

CDA has been in the frontage on providing expert advice and support services on the matters relating to obtaining the Certificate of Entitlement and VAT reclaim on expenses relating to Expo 2020. 

You may also read, EXPO 2020 – Importance of selecting the Investment source of funds

We can clarify your queries in the subject matter and assist you in each step in your journey in Expo 2020 with our industry-specific knowledge and experience. We are a locally based consulting firm providing accounting, tax, compliance, audit and other services in UAE.

If you have any doubts regarding Certificate of Entitlement for Expo 2020 Dubai, Feel good to contact us. CDA is always there for your respite!