VAT Refund Window Closing: UAE Capital Projects Must File Claims by November 2025 Before Process Changes

Key Takeaways

Introduction: Is Your Capital Project’s VAT Refund At Risk? 

Picture investing millions into an infrastructure project—only to miss the VAT refund deadline because of a looming regulation change. For large-scale projects, delayed refunds aren’t minor—they can strain cash flow and stall budgets. 

But time is running out. The UAE VAT refund deadline 2025 is fast approaching. From November, the Federal Tax Authority (FTA) is expected to overhaul the VAT refund process, particularly for capital ventures. That means more paperwork, stricter documentation, and longer timelines. 

 

This blog unpacks: 

  • What's changing with the VAT refund process 
  • Why the refund window is closing by November 2025 
  • Real challenges project CFOs are facing  
  • A step-by-step action plan to secure timely refunds  
  • How ASC Group can fast-track claim success in a shifting environment 

Understanding the Changing VAT Landscape for Capital Works 

Recent reforms are reshaping the VAT terrain. With Cabinet Decision No. 100 of 2024 (effective November 15, 2024), the FTA amended 34 articles across VAT executive regulations to tighten definitions and refund procedures. 

A key clarification in Public Clarification VATP040 impacts capital project VAT refunds—especially for government-related buildings or infrastructure. Meanwhile, tax alert platforms and industry experts warn that refund claims filed after November may be subject to new scrutiny, slower timelines, or stricter evidence requirements

 

Why the November 2025 Deadline Matters—Stat, Trend, and Risk

 

Issue Impact on Capital Projects 
Regulatory overhaul from Nov 15, 2024 Claims now must follow updated documentation and definitions  
FTA’s new interpretation for capital assets Some project elements may lose eligibility without timely filing  
Emerging guidance urges early filing Helps minimize rejection risk and optimize cashflow timing 
Refund delays can inflate project costs Withholding can strain budgets and trigger financing issues 

 

Real-World Challenge: Bridging the Refund Timing Gap 

 

A government project in Abu Dhabi completed major infrastructure work in Q2 2025. Due to internal audit cycles, the VAT documentation wasn't prepared until October. With November looming and new rules on the way, the project manager faced a tough reality: without expedited processing, refunds could slip into 2026—tightening budgets and delaying reinvestment. 

This isn’t fiction—it’s increasingly common. The FTA’s reforms are tightening the window, and traditional timelines no longer suffice. 

 

Practical Steps to Secure Your VAT Refund 

 

1. Audit Refund Eligibility Now 
Review completed work, invoices, and contracts to confirm what qualifies under the revised VAT framework. 

 

2. Gather Comprehensive Documentation 
Ensure invoices, customs proofs, supply contracts, and payment trails are fully collated. 

 

3. Submit Claims Before November 
Even if processing occurs later, filing before regulatory changes take effect safeguards your project. 

 

4. Anticipate Additional Scrutiny 
Prepare internal briefs and reconciliation reports to support claims under stricter post-November scrutiny. 

 

5. Partner with Experts 
ASC Group supports documentation review, claim filing, and ensuring alignment with new FTA interpretations. 

 

Conclusion 

 

The UAE VAT refund deadline 2025 isn't theoretical—it’s a looming gatekeeper to capital project funding. Miss it, and you risk lengthy delays, stricter vetting, or outright rejections. 

By acting now—auditing, documenting, and filing early—you preserve liquidity and financial certainty. Plus, partnering with ASC Group ensures your claims are compliant, optimized, and submitted before the window narrows. 

 

Time is money. Contact ASC Group to fast-track your refunds and secure your project’s financial health before the deadline

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