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The new mosque in Sharjah.Wan
The Federal Tax Authority (FTA) is now accepting requests for Value Added Tax (VAT) refunds on mosque operations through its EmaraTax digital tax services platform, following a Cabinet and Ministerial decision that has come into effect for all UAE mosques.
Requests for refunds must be submitted within the stipulated deadlines, which are based on the mosque’s operating dates. The FTA will receive tax refund applications from mosques that started operating before January 1, 2022, covering the period 2018-2022, i.e. April 2023 to September 2023.
The FTA also specifies the documents required to complete an application for input tax refund arising from the operation of a mosque. These include copies of Emirates ID or passport, bank account proof, mosque operating expense statement, and copies of five top tax invoices.
Meanwhile, from October to December 2023, the authority will receive applications for tax rebates from mosques that started operations on or after January 1, 2022, covering 2022. Mosques must submit tax refund claims for operations between January and April of the following year for any year after 2022.
FTA Director-General Khalid said: “Back in November, the Federal Tax Authority launched a mechanism to recover all mosques arising from the construction and operation of mosques across the UAE through a simple and straightforward process on the EmaraTax digital tax services platform. VAT.” Ali Bustani.
“The procedure, which complies with the criteria laid down by the Cabinet Decision in this regard, can be viewed on the FTA’s website and outlines the conditions for submitting the application, the specific costs that can be recovered when building and operating the mosque, and the required documents. Furthermore, In order to facilitate and expedite the refund process, a Ministerial Decision has been issued setting out a timeline for submission of applications based on the date of completion of the construction of the mosque.”
“As part of the authority’s policy of raising awareness about the development and continuous updating of the tax system, a guide was issued explaining the procedure for recovering VAT on the construction and operation of mosques on the FTA website,” he added. “The guidelines explain in detail all matters related to tax recovery for building and operating mosques, including the conditions to qualify for a refund, required documents, recoverable fees, and an online procedure for a seamless refund.”
The Director-General of the FTA has called on all stakeholders to read the Cabinet Decision and Ministerial Decision and Guidance issued in this regard, which contain extensive information on the procedure and timetable for receiving refund requests.
The Federal Revenue Service has clarified that in order to apply for the refund of input tax incurred on operating a mosque, certain conditions must be met as per the Cabinet decision. Operators may claim input tax refunds on goods or services directly related to the operation or maintenance of mosques, but not in connection with any commercial establishments associated with mosques. In addition, the mosque must be registered as a mosque with the competent authority and the operator must hold a valid written permission issued by the competent authority to operate the mosque during the period of the refund application.
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