VAT refund for visitors and tourists as per FTA

Anshika AggrawalAnshika Aggrawal    10 September 2019
VAT refund for visitors and tourists as per FTA

Tourists and visitors in UAE 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.

Starting18 November 2018, eligible tourists in the UAE will be able to request refunds on the Value Added Tax (VAT) incurred on their purchases while there are in the UAE. Only tax invoices issued from 18 November 2018 will qualify eligible tourists to reclaim taxes on their purchases. 

Planet is the exclusive operator of the tax refund system for tourists which Federal Tax Authority executes in the UAE.

Conditions for tourists to claim their VAT refunds

Following conditions to be met by tourists and visitors to claim tax refund on purchases made in UAE:

  • 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 for eg motor vehicles, boats and aircrafts
  • 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 planet which is 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. 

These eligible outlets can be identified with posters displayed on their storefronts and visible to visitors.

Tourists will receive 85% of the total VAT amount paid, minus a fee of 4.80 dirhams per Tax Free tag. This tag will be placed by retailer on the back of original sales receipt.

Goods must be validated by Planet's Validation Point prior to checking in your luggage and approaching the Immigration counters

Once validated, visitor need to choose a refund method (Cash or Card)

 

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