Can UAE Businesses Recover UK and EU VAT? A Practical Cross-Border Guide

Many UAE companies attend trade fairs in Europe, book hotel accommodation for staff, purchase training or consulting services overseas or import equipment for international operations. These activities frequently incur foreign VAT, and a large share of it can be recovered if the business follows the correct procedures. The challenge is that VAT recovery in Europe and the United Kingdom operates under strict non resident refund rules. These rules determine whether a UAE company qualifies for a refund and what evidence it must provide.

UAE Businesses are treated as Non EU and Non UK Claimants

For VAT incurred in the European Union, UAE companies must apply under the EU Thirteenth Directive, the dedicated refund framework for non EU businesses. UAE companies can recover EU VAT if they are not established in the Member State, are not VAT registered there and have not carried out taxable activity that triggers registration. The expenses must also relate to the business activity of the UAE company and invoices must meet EU standards.

For the United Kingdom, the same approach applies. The UK operates a post Brexit refund scheme under VAT Notice 723A. UAE businesses can recover UK VAT provided they are not established in the UK, are not registered for UK VAT and have not made local supplies apart from limited exceptions such as reverse charge transactions.

The Reciprocity Requirement may apply in the EU

EU Member States have the right to require reciprocity. This means they may only refund VAT to a UAE business if the UAE offers comparable refund rights to businesses from their jurisdiction. Since the UAE operates a Business Visitor Refund Scheme, several Member States accept UAE claims, but the position is not uniform across Europe. Each country must be checked individually because the decision rests with the national tax authority.

The United Kingdom does not apply reciprocity. UAE companies can recover UK VAT regardless of whether the UAE provides similar rights to UK businesses.

What VAT can a UAE Company recover?

UAE companies may be able to recover VAT on the following categories of expenditure, subject to each country’s domestic rules.

• hotel accommodation for employees travelling on business
• admission fees for exhibitions, conferences and trade fairs
• professional services such as consulting, legal advice and accounting
• car hire, transport and road tolls
• equipment rental and stand build costs for events

Restrictions apply to some expenses, particularly entertainment. Several EU countries block VAT on meals or restaurant costs. Passenger vehicles are often non recoverable. The exact rules must be confirmed per jurisdiction.

Deadlines and Filing Requirements are strict

EU Thirteenth Directive claims must be submitted by 30 June of the year after the VAT was incurred. Some Member States allow quarterly claims with higher minimum thresholds, while annual claims usually have lower thresholds. Original invoices are often required and many tax authorities request additional documentation during the review process.

UK claims follow a separate timetable. The refund period runs from 1 July to 30 June, and claims must be filed by 31 December after the end of that period. All claims must use the official forms and be supported by original invoices and a certificate of business status issued in the UAE.

Processing times vary. Several EU countries can take months to reach a decision, and requests for clarification are common.

When a UAE Business must Register instead of Claiming

If a UAE company’s activity in an EU Member State or the UK triggers local VAT registration, the company cannot use the non resident refund scheme. Registration triggers include holding stock, importing goods into the EU, operating training or events where the place of supply is local or providing services that do not fall under reverse charge rules. In these situations, the UAE company must register locally and recover VAT through its VAT returns rather than through the refund mechanism.

UAE VAT Refund Rights and Cross-Border Alignment

The UAE operates a Business Visitor Refund Scheme that allows foreign companies to recover UAE VAT under specific conditions. Because the scheme exists, it strengthens reciprocity positions within the EU and helps UAE companies qualify in more Member States. This does not guarantee acceptance in all jurisdictions, but it removes a significant barrier.

Summary

UAE companies can recover VAT incurred in the European Union and the United Kingdom, but the process requires careful preparation. Eligibility depends on having no local establishment, no VAT registration and no taxable activity that would trigger registration. Documentation must meet strict local standards and deadlines are rigid. For businesses that attend European exhibitions, work with EU suppliers or send staff on overseas trips, VAT refunds can provide a meaningful cash benefit when managed correctly.

See our specialist pages
Global VAT Reclaim - Recover the Tax you’ve already paid abroad
UK VAT Reclaim for U.S. and Global Businesses
EU VAT Reclaim for U.S. and Global Businesses
UAE VAT Reclaim for U.S. and Global Businesses
International VAT Reclaim

Disclaimer

This article is for general informational purposes only and does not constitute legal or financial advice. Regulations and fees can change; always verify details directly with the Dubai Department of Economy and Tourism before applying.