TaxSavvyAE

Refund for a startup with set-up costs

We spent a lot on fit-out and have no sales yet. Can we get the VAT back?

The situation

A registered business can recover input VAT on costs for future taxable supplies and request a refund of excess credit.

The law

  • Art 55, Federal Decree-Law 8 of 2017: Input tax deducted when holding a valid tax invoice and intending to pay
  • 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

What it means for you

Example: a restaurant registered voluntarily and paid AED 45,000 VAT on fit-out. With no sales, its return shows a AED 45,000 credit. It can request a refund, and the FTA will check the business is real and intends to make taxable supplies. Keep the licence, lease and contractor contracts ready.

What to do

  1. File returns showing the credit.
  2. Prepare contracts and invoices for big items.
  3. Request the refund on EmaraTax.
  4. Answer FTA questions about the business plan.

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

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