Official Participants of Expo 2020 will be incurring VAT on Goods and Services connected to the Expo 2020 as per normal UAE VAT rules. In certain situations, Official Participants are eligible to recover VAT on certain Goods and Services which were imported or acquired. The application to recover VAT incurred can be made by one of the following methods:
- Where the Official Participant is not registered for UAE VAT, the refund applications can be made through the Bureau by submitting a special refund application to the Bureau.
- Where the Official Participant is registered for VAT, it may reclaim VAT via its UAE VAT return.
It should be noted that the Official Participant must register for VAT if the value of their taxable supplies or imports (for commercial or non-official purposes) in the UAE exceeds, or is anticipated to exceed, the mandatory registration threshold of AED 375,000
What are the allowable categories of Goods & Services on which VAT can be claimed (for Expo 2020 participants)
Official Participants are able to reclaim VAT incurred on the import and acquisition of the following four categories of Goods and Services without the need to use them for making taxable supplies:
- VAT incurred by the Official Participant on Goods and Services in direct connection with the construction, installation, alteration, decoration and dismantlement of their exhibition space;
- VAT incurred by the Official Participant on Goods and Services relating to the actual operation of the office of the Official Participant, provided that the value of each Good or Service for which a claim is made is not less than AED 200;
- VAT incurred on the import of Goods for personal use of the Official Participant’s Section Commissioner-General, Section Staff and the Beneficiaries.
It should be noted that in order to be eligible to reclaim VAT on expenses under categories 1 and/or 2 (above), the Official Participant must be in possession of a Certificate of Refund Entitlement issued by the Bureau.
In respect of imports made by Official Participants, it should be noted that they may use the special TRN (Tax Registration Number) allocated to the Bureau, in coordination with the Bureau, where the goods fall under Categories 1 and 2 (above), and they hold a Certificate of Refund Entitlement. Where the special TRN is used, no import VAT will be imposed in respect of the goods, and such goods should not be included in any refund application.
You can download full guideline here
How Lynchpin Consulting can help you?
We have a team of VAT experts who can take care of all your Expo 2020 VAT related issues. We can help in your VAT registration (if needed) and help you file the VAT returns or to claim your VAT refund for UAE’s Federal Tax Authority.