The UAE introduced a 5% Value Added Tax (VAT) in January 2018 on most goods and services to strengthen the economy and reduce dependence on oil revenue. Later that year, in November 2018, the UAE rolled out the VAT refund system for tourists, allowing eligible visitors to claim back the VAT paid during their stay.
Tourist VAT Refunds in the UAE – Overview
In November 2018, the UAE government, together with the Federal Tax Authority (FTA), officially launched a VAT refund scheme for tourists. This system enables visitors to retrieve the VAT paid on purchases made at approved retail outlets. The refund process works through a seamless electronic system activated after the VAT law came into effect.
Only retailers registered under the “Tax Refund for Tourists Scheme” and connected to the digital platform can offer VAT refund services.
If you’re wondering “How can tourists claim a VAT refund in the UAE?”, here’s everything you need to know.
VAT Refund for Online Purchases
The UAE has recently introduced a new system to support VAT refunds for tourists who shop online during their visit. This initiative aligns with the FTA’s goal of strengthening the UAE’s position as a top destination for both tourism and e-commerce.
Under the new system, tourists can claim VAT refunds on online purchases made through registered e-commerce platforms. During checkout, travellers simply need to enter their travel document details before the order is shipped.
The programme, developed in partnership with Planet, the official VAT refund operator, ensures that a tourist’s identity is verified at the time of delivery or while completing the online order process—finalising their VAT refund eligibility...Read More
