ABU DHABI, The Federal Tax Authority (FTA) has set the timelines for submitting requests to refund Value Added Tax (VAT) incurred on the construction and operation of mosques via the FTA’s e-Services portal, applicable on all mosques in the UAE.
The FTA has set five time periods for receiving requests through its official website to refund VAT incurred on the construction of mosques, after the completion of the mosques’ construction, based on the operation date as per the Mosque Operation Commencement Certificate.
The Decision published on the FTA’s website indicated that the first period begins in November 2022 and continues until January 2023, within which the FTA will receive tax refund requests in relation to the construction of mosques that began operations from 1 January 2018 to 31 December 2018.
The second period covers February and March 2023, within which the FTA will receive tax refund requests in relation to the construction of mosques that began operations between 1st January 2019 and 31st December, 2019, whereas the third period spans March and April 2023, and within which the FTA will receive tax refund requests in relation to the construction of mosques that began operations from 1 January 2020 to 31st December 2020.
As per the Decision, the fourth period covers April and May 2023, within which the FTA will receive tax refund requests in relation to the construction of mosques that began operations from 1st January 2021 to 31st December 2021.
The fifth period extends from June to December 2023, within which the FTA will receive tax refund requests in relation to the construction of mosques that began operations between 1 January 2022 and 31 December 2022.
As for mosques that will begin operating from 1st January, 2023 onwards, tax refund requests in relation to their construction can be submitted within 12 months from the issuance of the Mosque Operation Commencement Certificate by the competent authority (The General Authority of Islamic Affairs and Endowments, or the Local Authority concerned with mosque’s affairs).
With regard to the requests received to refund VAT incurred on the operation of Mosques, the Decision specified the period from April to September 2023 for the FTA to receive tax refund requests related to mosques that began operating before 1st January, 2022, for the tax incurred on operation during all years from 2018 to 2022.
The Decision also specified the period from October to December 2023 for the FTA to start receiving tax refund requests in relation to the mosques that began operating on or after 1 January 2022, for the tax incurred in the year 2022.
As for all mosques, tax refund requests in relation to the operation of mosques for the years after 2022, during the period from January to April of the year following the year it was incurred in.
The Decision stated that any request to refund input tax incurred on the construction and operation of mosques submitted beyond the specified timelines will not be accepted.
The FTA has launched, as of this November, a mechanism to refund VAT paid for the construction and operation of all mosques in the UAE in accordance to the decisions issued, provided that refund requests are submitted within the timeframes through the FTA’s e-Services portal.
Source: Emirates News Agency