VAT Refund for Tourists in UAE

VAT refund for tourists in UAE has been introduced. Tourists can claim VAT Refunds through self service kiosks in shopping malls and hotels in UAE. Tourists and visitors can claim VAT refund paid on purchases they made during their stay in UAE. Tourists who are visiting UAE do not have to bear the burden of VAT. They need to pay the VAT amount at the time of purchasing though but they can get the refund of the VAT amount before they exit from UAE.

Tourists can recover their VAT payment from fully functional and integrated electronic system retailers registered in the ‘Tax Refund for Tourists Scheme’ with all ports of entry and exit from the UAE.

VAT Refund Scheme for UAE

Federal Tax Authority (FTA) has authorized an institution named “Planet” to operate the electronic system for the tax refunds of tourists and visitors in UAE. FTA is installing self service kiosks in major shopping malls, hotels and all the entry and exits points of UAE to make it easy for the tourists to claim VAT refund before exiting the country. 

VAT refund scheme in UAE makes it possible for eligible tourists to receive a portion of  VAT as a refund for products bought at registered stores. VAT amount can be claimed from an electronic system, at designated spaces, without any human interference. Once you submit the required documents, the digital system decides whether the taxes are eligible for refund and if yes, reimburses the tourist via cash or credit card.

Procedure for retailers to join the scheme

• Need to submit request to join the scheme online and be subject to a credit check
• Issue a sales receipt at the point of sale and affix a Tax-Free tag
• Adjust the VAT applicable under tourist refund scheme while submitting the VAT return

Who can issue tax free tags?

• Any retailer registered for VAT with FTA, and who is regular in filing the return and paying due tax to authority
• Seller of goods eligible to receive tax refunds as determined by the FTA

The maximum amount is set at Dh7,000 per day for tax refund in case of cash payment. This process can be carried out at self-service kiosks, as well as at tax refund offices located at ports of exit across the UAE. You will receive 85% of the tax amount paid and the deduction of AED 4.80 per tax free tag which is validated.

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