Federal Tax Authority Decision No. 4 of 2022 Setting On the Time Limit for Claiming Refund of VAT by Tourists

Federal Tax Authority Decision No. 4 of 2022 Setting On the Time Limit for Claiming Refund of VAT by Tourists

1. The personal protective equipment used for the protection from Covid-19, for which a decision issued from the Minister of Health and Prevention in coordination with the Ministry of Finance specifying and stating its features and technical specifications, shall be considered as Medical Equipment subject to VAT at the zero rate.
2. The supply of Medical Equipment mentioned in Clause (1) of this Decision shall be subject to VAT at the zero rate if the date of supply of the medical equipment, and the date of delivery to the recipient or the date on which they are placed at the recipient’s disposal, occurs within 6 months from the date of this Decision.
3. The import of Medical Equipment mentioned in Clause (1) of this Decision shall be subject to VAT at the zero rate if such medical equipment are imported into the State within 6 months from the date of this Decision.
4. Where the date of import of Medical Equipment, the date of their supply, the date of their delivery to the recipient, or the date on which they are placed at the recipient’s disposal, occurs after 6 months from the date of this Decision, the Medical Equipment shall be subject to VAT at 5% in the tax period in which the date of supply occurs.
5. For the purposes of this Decision, the date of supply shall be determined in accordance with Articles 25 and 26 of the Federal Decree Law No. 8 of 2017 on Value Added Tax.

The operator of the Tax Refunds for Tourist Scheme shall set a one-year time limit for tourists to claim the refund of Value Added Tax through bank card or by cash, from the date of verification of the refund request, and to include this in its published list of terms and conditions.

In the event that the operator of the Tax Refunds for Tourist Scheme has any unclaimed tax amounts by tourists in accordance with Article 1 of this Decision, the operator of the Tax Refunds Scheme must deliver such funds to the Federal Tax Authority within one month of the expiration of the time limit referred to.

The Federal Tax Authority Decision No. 4 of 2019 on Setting Time Limit for Cash Refunds of VAT by Tourists, as well as any provision contrary to or inconsistent with the provisions of this Decision shall be abrogated.

This Decision shall come into effect as of 1 June 2022.