The Federal Tax Authority (FTA) published Decision 4 of 2022 for ‘Setting the Time Limit for Tourists to Claim Refund of VAT’. Tourists have a time limit of one year from the date of verification of the refund request to claim their VAT refund by bank card or in cash. The operator of the Tax Refunds for Tourist Scheme is required to deposit the unclaimed money to FTA within one month of expiration of time limit if the tourist fails to claim the VAT refund within that time.
FTA calls tax registrants to benefit from the extension of the grace period for the re-determination of administrative penalties on violating tax law until December 31, 2022.Tax registrants who were not able to benefit from redetermination by December 31, 2021, can now benefit from the one-year extension.
The decision has been taken by the Cabinet in line with the wise leadership’s directives to reduce burdens on business sectors and enhance their abilities to contribute more to the growth of the national economy. The decision is also a part of the FTA’s goal to provide a legislative environment that encourages a high level of tax compliance.
