VAT Refund for Tourists

Tourists and visitors can claim refund on VAT paid on purchases they made during their stay in the UAE. Recovery of payment will be done through a fully integrated electronic system which connects retailers registered in the ‘Tax Refund for Tourists Scheme’ with all ports of entry and exit from the UAE

Conditions for tourists to claim their VAT refunds

For a tourist to claim VAT refund on purchases he made in the UAE, he must fulfil certain conditions:

• Goods must be purchased from a retailer who is participating in the 'Tax Refund for Tourists Scheme
• Goods are not excluded from the Refund Scheme of the Federal Tax Authority
• He must have the explicit intention to leave the UAE in 90 days from the date of supply, along with the purchased supplies
• He must export the purchased goods out of the UAE within three months from the date of supply
• The process of purchase and export of goods must be carried out according to the requirements and procedures determined by Federal Tax Authority

Where and how can tourists claim VAT refund for their shopping

Federal Tax Authority has allocated spaces where tourists can reclaim taxes through a fully electronic system managed in partnership with a global operator. Tourists will receive their refunds through a special device placed at the departure port - airport, seaport, or border port - by submitting the tax invoices for their purchases from the outlets registered in the Scheme, along with copies of their passport and credit card. Once these documents are submitted, tourists can either recover the VAT in cash in UAE dirham, or have it transferred to their credit card. Until October 2018, 4,000 retail outlets across the UAE were connected electronically to the system. These eligible outlets can be identified with posters displayed on their storefronts and visible to visitors.

Tourists can claim VAT Refunds in Shopping Malls and Hotels in UAE

Tourists can claim VAT Refunds in shopping malls and hotels in UAE. Visitors can reclaim their taxes on shopping from the Self-Service Kiosks which will be set up at major shopping malls and hotels across the UAE.

“The Value Added Tax (VAT) Recovery Self-Service Kiosks for Tourists scheme has been expanded to be available at major shopping malls and hotels, in addition to the existing ones at air, land, and maritime entry and exit ports across the UAE,” announced the Federal Tax Authority, (FTA).”Last year, FTA had introduced the self-service kiosks across all ports to allow visitors to recover VAT when leaving the UAE. VAT Refund for tourists in UAE has been made easier by installing the kiosks. Planet- the company authorized by the FTA to operate the electronic system for the Tax Refunds for Tourists Scheme launched nine self-service kiosks in stage one of implementing the plan, setting them up at multiple shopping malls and hotels.The kiosks are equipped with state-of-the-art technology allowing them to fully process VAT refund requests for tourists.

VAT Refund for Tourists within 24-hours of Departure

FTA explained that the kiosks allow tourists to process their requests to recover VAT from the convenience of their hotel or at major malls in a matter of minutes. Applicants can scan their boarding pass to prove they will be leaving the UAE in the next 24 hours, as well as their original passport (or identity card for GCC nationals), and then follow the simple instructions displayed at the self-service kiosks. FTA revealed that Planet intends to deploy up to 55 new self-service kiosks by the end of 2020. Some 25 of the kiosks will be stationed in malls and 30 in hotels. Kiosks are meant for faster processing of VAT recovery requests. In addition, tourists can now recover VAT just from their hotels or in major malls in UAE in just a matter of a couple of minutes.

What is required to get refund

Tourists or visitors must submit the tax invoices of their purchases, marked with Tax-Free’ stickers issued by retail outlets registered in the system, along with their passport and credit card.No limit is placed on the maximum amount that can be recovered if said amount is transferred to the tourist’s credit card. 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.

Who is eligible for VAT refunds for tourists?

Not all tourists are able to reclaim VAT on purchases that were made whilst in the UAE. Under current legislation, travelling tourists need to fall within any of these categories for them to eligible for the refund scheme for tourists:

• GCC nationals
• Travellers aged 18+ that are not UAE residents
• Not crew members of flights that leave the UAE