Old VAT credit and the 31 December 2026 deadline
We have a VAT credit from 2021 in EmaraTax. Can we still get it refunded?
The situation
From 1 January 2026, credits must be refunded or used within 5 years from the end of the period they arose in. Credits whose 5-year period expired before 2026 or expires during 2026 got a transitional window to 31 December 2026.
The law
- Art 74, Federal Decree-Law 8 of 2017 as amended from 1 January 2026: Refund of excess recoverable tax; carry forward or refund only within 5 years
- Tax Procedures Law as amended by Federal Decree-Law 17 of 2025: Transitional refund rights for expiring credits
What it means for you
Example: a credit from the quarter ending 30 June 2021 would have expired on 30 June 2026, so you must file the refund request by 31 December 2026. After that date it is lost. With less than two months left, prepare the file now.
What to do
- List credits by the period they arose.
- Mark any 2021 or earlier credits.
- File refund requests before 31 December 2026.
- Keep supporting invoices ready for FTA questions.
Credits not claimed by the deadline are forfeited permanently.
We can do this for youVAT refunds: excess input VAT refund, 5-year limit, new residence refund for nationals and tourist refund context: AED 2,500