TaxSavvyAE

Refund for an exporter of services

We bill all our clients abroad and pay VAT on local costs. Can we get regular refunds?

The situation

Exports of services can be zero-rated when conditions are met, so input VAT on local costs often becomes a refundable credit.

The law

  • Art 45, Federal Decree-Law 8 of 2017: Zero-rating of exports including services meeting conditions
  • 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 design studio with all clients in Europe pays AED 12,000 VAT a quarter on rent and tools. It can claim refunds regularly. Keep proof that clients are outside the UAE and do not benefit from the service in the UAE, which is a key condition.

What to do

  1. Document each client's location.
  2. Zero-rate qualifying export invoices.
  3. File returns showing credits.
  4. Request refunds every few quarters.

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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