Tourists will be able to claim back Value Added Tax (VAT) on any purchases they make in the UAE from November 18, it was announced yesterday. uae vat refunds

The Federal Tax Authority (FTA) said that the Tax Refund for Tourists Scheme would go into effect next month, allowing eligible tourists to request refunds of the five per cent VAT incurred on their purchases.

The first phase will see the digital system of the Tax Refund for Tourists Scheme implemented at Abu Dhabi, Dubai and Sharjah International Airports, a statement from the FTA said.

As of mid-December, the system will be fully operational to include all airports, land and seaports in the UAE as stipulated in the Cabinet decision. The government says the move aims to strengthen the UAE’s position as a major global tourism destination.

The FTA explained that tax invoices issued starting November 18, 2018, will qualify tourists who are eligible for a tax refund to reclaim taxes incurred on their purchases.

FTA Director-General Khalid Ali Al Bustani said in the statement that more than 4,000 retail outlets across the UAE will be connected electronically to the system, clarifying that only the invoices issued by retail outlets registered in the scheme and connected to the system are eligible for a refund.These eligible outlets can be identified with posters displayed on their storefronts and visible to visitors, he said. uae vat refunds

Conditions for tourists to claim their VAT refunds

For a tourist to claim a VAT refund on purchases he made in the UAE, he must fulfill 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 the 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 dirhams, 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.

Visiting Dubai? Do not miss:

Enjoyed this? Let your friends know!