VAT Refunds for Tourists in the UAE

Your Ultimate Guide to VAT Refunds for Tourists in the UAE 

Are you planning a visit to the United Arab Emirates (UAE) and looking forward to  indulging in some retail therapy? Well, here's some excellent news for you – tourists  and visitors can claim a refund on the Value Added Tax (VAT) they pay on their  purchases during their stay in the UAE. This initiative, known as the 'Tax Refund for  Tourists Scheme,' was introduced to make your shopping experience even more  delightful. In this comprehensive guide, we'll walk you through everything you need to  know about VAT refunds for tourists in the UAE. 

What is Tax-Free Shopping? 

Tax-free shopping is the process of purchasing taxable goods in the UAE with the  intention of exporting them. Eligible tourists can request a refund of the VAT paid on  their purchases after validating them at the point of exit. If you've already validated  your purchases, you can claim your refund within one year from the date of export  validation. 

Operator of the VAT Refund System 

The exclusive operator of the VAT refund system for tourists in the UAE is Planet.  Most popular stores are registered with this scheme, ensuring a seamless refund  process when you depart the UAE, whether by land, sea, or air. 

How to Shop Tax-Free 

Here's a step-by-step guide to shopping tax-free in the UAE: 

1. Minimum Expenditure: Make a minimum expenditure of AED 250 at a store to  qualify for a tax-free purchase. 

2. Travel Document: Present your valid travel document, which will be scanned  for the payment system. 

3. Information Capture: The shop assistant will capture your information using  the Planet system. 

4. Tax-Free Tag: The shop assistant will affix a 'tax-free' tag to the back of your  sales receipt. 

5. Digital Tax-Free Form: A digital tax-free form will be created for your  purchase. 

6. Validation: Ensure that you validate the transaction at the airport within 90  days of the purchase date.

Conditions for Tourists to Claim VAT Refunds 

To be eligible for VAT refunds, tourists must meet the following conditions: 

● Be at least 18 years old. 

● Purchase goods from a retailer participating in the 'Tax Refund for Tourists'  scheme. 

● Ensure the goods are not excluded from the refund scheme of the Federal Tax  Authority (FTA). 

● Physically present the tax invoice, 'tax-free' tags, and relevant goods when  claiming the refund. 

How to Collect VAT Refund 

Collecting your VAT refund is a straightforward process. Head to the departure port,  whether it's an airport, seaport, or border port, and submit the following documents: 

● Tax invoices for your purchases from registered outlets. 

● A copy of your passport. 

● A copy of your credit card. 

You can choose to receive your refund either in cash in UAE dirhams or have it  refunded to your credit card. 

Refund Amount and Fee 

Tourists are entitled to receive 85 percent of the total VAT amount paid, with a  deduction of AED 4.80 per tax-free tag. 

Additional Resources 

For more information, you can refer to the official UAE government website.  

Now that you're armed with this knowledge, you can make the most of your shopping  experience in the UAE. Happy shopping, and enjoy your visit to this remarkable  destination!