Carry the excess forward
When your recoverable input VAT exceeds your output VAT for a period, the excess becomes a refundable credit. You can carry it forward to offset VAT payable in future periods.
VAT recovery · UAE
VAT refunds in the UAE, claimed correctly
When your input VAT outruns your output VAT, we help you carry it forward or reclaim it on EmaraTax — with blocked input tax stripped out and every figure backed by valid invoices.
Excess input VAT: two routes
A net-refund position gives you a choice. We help you pick the right one.
Claim a refund on EmaraTax
Instead of carrying it forward, you can request the excess back from the FTA. The refund is claimed through the EmaraTax portal and, once approved, paid to your bank account.
What you cannot recover
Some input VAT is blocked by the Executive Regulation and can never be reclaimed, even when you are registered. Including it in a refund is a common cause of FTA adjustments — so we screen it out first.
Entertainment for non-employees
Input VAT on entertainment provided to anyone who is not an employee — clients, prospects, shareholders, or other visitors — is blocked and cannot be recovered.
Motor vehicles for personal use
Input VAT on a motor vehicle that is available for the personal use of any person is blocked. Exceptions apply to vehicles such as taxis, emergency vehicles, and rental-fleet stock.
Employee personal-use goods
Input VAT on goods or services bought for an employee’s personal benefit is blocked, unless a legal obligation or documented contractual duty requires you to provide it.
Note: VAT you self-account under the reverse charge mechanism is generally recoverable in the same return where the supply relates to taxable activity — a different case from blocked input tax.
What the service covers
From eligibility to a paid refund, we run the whole claim.
Refund eligibility review
We confirm your net refundable position and check every claim line against the input-tax recovery rules before anything is submitted.
Blocked input tax screening
We strip out blocked input tax — entertainment, personal-use vehicles, and employee personal-use costs — so your claim stands up to FTA scrutiny.
EmaraTax refund filing
We prepare and submit the VAT refund application on EmaraTax with the supporting documentation the FTA expects.
FTA query handling
If the FTA raises questions or requests evidence, we respond on your behalf and track the claim through to payment.
Refunds start with a clean VAT 201 — see our VAT filing service or the UAE VAT guide.
FAQ
VAT refund questions, answered
When can a UAE business claim a VAT refund?
When your recoverable input VAT for a tax period is greater than your output VAT, you have excess input VAT. You can either carry that excess forward to offset future VAT payable, or request it back from the FTA as a refund through the EmaraTax portal.
Should I carry the excess forward or claim it back?
It depends on your cash-flow needs and how consistently you expect to be in a net-refund position. Carrying forward is simpler and offsets future liabilities automatically; claiming a refund brings the cash back sooner but involves an application and FTA review. We advise on the better route for your situation.
What is blocked input tax?
Blocked input tax is VAT you have paid but are not allowed to recover, even though you are registered. Under the Executive Regulation this includes entertainment provided to non-employees, motor vehicles that are available for personal use (with exceptions such as taxis, emergency vehicles, and rental stock), and goods or services bought for an employee’s personal use where there is no legal or contractual duty to provide them.
Can I recover VAT on a company car?
Not if the vehicle is available for the personal use of any person — that input VAT is blocked. The main exceptions are vehicles used strictly as taxis, emergency vehicles, or vehicles held as trading stock by a rental or dealership business. We assess each vehicle before including any VAT in a claim.
How long does an FTA VAT refund take?
The FTA reviews refund applications submitted on EmaraTax and may request supporting documents before approving payment. Timelines vary with the size and complexity of the claim and how complete the evidence is. A well-documented claim with blocked input tax already excluded is processed more smoothly, which is exactly how we prepare them.
What records do I need to support a refund?
You need valid tax invoices, import and export documentation, and accounting records that tie every recoverable amount back to a business purchase. Missing or invalid invoices are a common reason claims are reduced, so we reconcile the supporting evidence before filing.
Enquire
Talk to a UAE VAT specialist
Tell us about your input VAT position and we'll advise whether to carry it forward or file a refund on EmaraTax.