The Federal Tax Authority (FTA) in the UAE has announced that it is now accepting refund requests for Value Added Tax (VAT) incurred on operating mosques through its EmaraTax digital tax services platform. This move is in line with the Cabinet Decision on Refund of Input Tax Incurred on the Construction and Operation of Mosques, which has gone into effect and applies to all mosques around the UAE.
According to the FTA, refund requests must be submitted within the set deadlines, in accordance with the date when the mosque in question started being operated by the applicant who submitted said request. The Authority clarified that certain conditions need to be met in order to request a refund on input tax incurred on operating a mosque, including that the operator has the right to request a refund of the input tax for goods or services directly related to the operation or maintenance of the mosque, provided that it is not related to any commercial facilities in connection with the mosque.
The FTA also specified the period from April to September 2023, during which it will receive tax refund requests on the operation of mosques that began operating before 1 January 2022, covering the years 2018 to 2022. Meanwhile, between October and December 2023, the Authority will be receiving tax refund requests on the operation of mosques that began operating on or after 1 January 2022, covering the year 2022. All mosques must submit tax refund requests on their operation for any given year after 2022 between January and April of the following year.
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