VAT REFUND FOR EXHIBITIONS AND CONFERENCES

VAT REFUND FOR EXHIBITIONS AND CONFERENCES

 

CONDITIONS TO CLAIM REFUND  :

 

  • ♦ The supply is of Exhibition and Conference Services
  • ♦ The recipient of the Exhibition and Conference Services does not have a Place of Establishment or a Fixed  Establishment in the State
  • ♦ The recipient of the Exhibition and Conference Services is not registered for VAT or required to register for VAT in the U.A.E.
  • ♦ The Supplier has obtained a written declaration from the recipient confirming that the recipient does not have a Place of Establishment or a Fixed Establishment in the U.A.E, and is not registered or required to register for VAT in the U.A.E
  • ♦ The recipient of the Exhibition and Conference Services has not paid the amount of VAT to the Supplier.

 

 

 

NOTE  :

 

  1. 1. If the Service supplied by the Supplier is the grant of the right to occupy space for the purposes of conducting an Exhibition or Conference then the Supplier must be registered with and licensed by the F.T.A. This license will be issued for a period of one year.
  2. 2. If the Service supplied by the Supplier is the grant of the right to access, attend or participate in an Exhibition or Conference then the Supplier must request for a license to be able to provide such rights for a specific Exhibition or Conference. Further, the event permit must be issued for the event before being able to apply for the license. This license will be valid for that event only.

 

 

LICENSING APPLICATION CRITERIA :

 

Scenario A :

 

The Supplier is applying for a license to grant the right to occupy space for the purposes of conducting an Exhibition or Conference. This applies for example to hotels and companies in the U.A.E who rent space for events

 

  • ♦ The Supplier must be registered for VAT with the F.T.A.
  • ♦ The Supplier must have a place of residence in the U.A.E.
  • ♦ The Supplier is in the business of renting out space for exhibitions or conferences.
  • ♦ The Supplier must have a valid trade license issued by the competent government entity where the commercial activity section is in line with the above-mentioned business
  • ♦ The Supplier owns space for exhibitions / conferences, or has authority to rent or operate space for exhibitions / conferences.
  • ♦ The Supplier’s venue is registered with the competent government entity for the purpose of ensuring that the venue meets minimum requirements to host an exhibition / conference

 

 

Scenario B:

 

The Supplier is an event organizer and is applying for a license to grant the right to access, attend or participate in an Exhibition or Conference. This applies to local and international event organizers which sell tickets to non-U.A.E residents

 

  • ♦ The event duration is seven days or less.
  • ♦ The Supplier has obtained an event permit from a competent government entity.

 

 

If the Supplier is a resident (local) organizer:

 

  • ♦ The Supplier must be registered with the F.T.A.
  • ♦ The Supplier must have a valid trade license where the commercial activity section is in line with the event management and organization industry/ sector/ business.
  • ♦ The Supplier must be registered with the concerned competent government entity as an organizer.

 

 

If the Supplier is a non-U.A.E resident (international) organizer:

 

  • ♦ The Supplier must provide the proof of establishment in an overseas jurisdiction

 

DOCUMENTS FOR SCENARIO A :

 

The Supplier must complete and submit to the F.T.A the ‘Supplier’s License Request Form to Grant the Right to Occupy Space’ which is available on the F.T.A website, along with the following supporting documentation:

 

  • ♦ Copy of the valid trade license
  • ♦ Venue registration proof issued by the competent government entity. This can be a certificate or an email confirming the registration and includes the registration ID. If this is not available then the following must be submitted:

 

o ◊ Use permit of the area.

o ◊ Layout drawing (plot plan) of the conference / exhibition space which will be rented out. This will include the location, dimensions and size of the rooms.

o ◊ Business profile document.

 

  • ♦ Provide three examples on the events facilitated/ hosted/ organized. Details should include name of events facilitated, purpose of events, date of events, size of events (number of attendees). These can be included in the business profile document or mentioned in the license form.
  • ♦ Copy of the passport or Emirates ID of the authorized signatory

 

 

NOTES ON TRADE LICENSE :

 

  • ♦ The document should be issued by the Department of Economic Development.
  • ♦ Trade name should be the same as the Supplier name.
  • ♦ Trade license should be valid for at least one month from the date of applying to the F.T.A. If valid for less than a month, evidence of re-applying should be submitted together with the existing trade license.
  • ♦ Commercial activity section should be relevant to the business type as per the eligibility criteria

 

 

NOTES ON BUSINESS PROFILE DOCUMENT  :

 

  • ♦ The description of the business profile must be similar to the commercial activities section and in line with the business type as per the eligibility criteria
  • ♦ The document must be signed by the authorized signatory

 

 

DOCUMENTS FOR SCENARIO B :

 

The Supplier must complete and submit to the F.T.A the ‘License Request Form for Event Organizer to Grant Access to Events’ which is available on the F.T.A website, along with the following supporting documentation:

 

  • ♦ Copy of the event permit provided by the competent government entity.
  • ♦ Sample ticket which illustrates the ticket price and event name
  • ♦ Copy of the passport or Emirates ID of the authorized signatory.

 

 

Furthermore, the following documents will need to be provided depending on whether the applicant is resident or not resident in the U.A.E:

 

  • If the Supplier is a resident:

 

o ♦ Copy of valid trade license.

o ♦ Copy of a valid organizer registration certificate provided by concerned competent government entity.

 

 

  • If the Supplier is a non-U.A.E resident:

 

o♦ Proof of establishment (e.g. a certificate of incorporation)

 

 

PROCESS OF APPLICATION   :

 

  • ♦ Fill the form and send it along with the supporting documents to the following email Exhibitors@tax.gov.ae
  • ♦ It will take the F.T.A up to 20 business days to review the application. The Supplier will be notified of the results.
  • ♦ If accepted, F.T.A will issue the license within 5 business days. The license will be provided in letter format and will be stamped by the F.T.A, scanned and sent by Email
  • ♦ License validity depends on the scenario that applies:

 

o ◊ If Scenario A applies, the license will be valid for one year and subject to renewal

o ◊ If Scenario B applies, the license will be valid for the specific Exhibition/ Conference only and cannot be used for other events.

 

  • ♦ The F.T.A will not charge a fee for such a license.

 

 

 

 

NOTE :

 

  • ♦ The Supplier should apply for license renewal one month before the expiry of the license
  • ♦ In the case that the Supplier’s trade license is expired, the Supplier must email the F.T.A for notification on trade license expiry and provide F.T.A with the updated trade license

 

 

VAT REFUND ON SERVICES SUPPLIED TO INTERNATIONAL CUSTOMERS PROCEDURE  :

 

The Supplier should collect from the International Customer a declaration which states that the International Customer:

 

1) Does not have a Place of Establishment or a Fixed Establishment in the U.A.E; and

2) Is not a registrant or required to register for VAT in the U.A.E.

 

The Supplier must receive the declaration letter from the International Customer and supporting documents (if any) before applying the VAT refund scheme. Where the conditions for the VAT refund are met, the Supplier must:

 

1) Retain the original declaration provided by the International Customer.

 

2) Provide the International Customer with a tax invoice. The invoice should charge applicable VAT and refund the same amount (or less) stating that the supply falls under the special VAT refund scheme.

 

3) Not collect VAT from the International Customer.

 

4) Report the VAT charged in respect of the Services as output tax in the relevant Tax Return. In the same Tax Return, the Supplier should claim a VAT refund of the amount of VAT charged.

 

 

NOTE :

 

  • ♦ The parties should retain records of all of the documentation issued and received under the scheme for the period of five years from the end of the tax period in which the license expired

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