VAT: FTA Decision on Conditions for Declining Tax Refund

The Federal Tax Authority (FTA) issued Decision No. 9 of 2025, effective from 1 January 2026, outlining conditions under which VAT refunds may be denied during tax audits.

Key Conditions for Refund Rejection

• Significant potential tax liabilities identified
• Suspected tax evasion
• Goods involved in tax evasion
• Outstanding tax returns
• Failure to provide requested audit information
• Lack of cooperation during audit

Businesses should ensure timely compliance and cooperation during audits to avoid refund rejections.

Regards,
FAAB PARTNERS