06/10/2023
Dubai tourist tax refund
Visitors and tourists exploring Dubai have the privilege to reclaim the Value Added Tax (VAT) paid on their purchases during their stay in the UAE. This reimbursement process is seamlessly executed through an integrated electronic platform that links retailers enrolled in the ‘Tax Refund for Tourists Scheme’ with all entry and exit points of the UAE.
In January 2018, the Federal Tax Authority (FTA) introduced a 5 percent VAT, and by the last quarter of 2018, they launched a fully digital tax-free shopping service, enabling tourists to apply for a VAT refund since that year. The system is administered by Planet, the exclusive operator of the tourist tax refund system, under the oversight of FTA.
Typically, most well-known stores are participants in this scheme, and tourists can secure their refunds upon departure via land, sea, or air travel. However, to be eligible for VAT refunds, tourists need to meet the following criteria:
• the traveller must be at least 18 years old
• purchases must be made from a retailer actively engaged in the ‘Tax Refund for Tourists’ program
• goods are not excluded from the refund scheme of the FTA
• the traveller must physically present the tax invoice, ‘tax-free’ tags and relevant goods
Please note that refunds are not applicable in the following cases:
• items that have been fully or partially consumed within the UAE
• goods that are not in the traveler’s possession upon exiting the country
How to shop tax-free?
Exploring tax-free shopping in Dubai is straightforward. Follow these steps to make the most of this opportunity:
• while shopping, tourists can request a tax-free purchase, applicable for expenditures of AED 250 or more
• the visitor’s valid travel document will be scanned for integration into the payment system
• the shop assistant will utilize the Planet system to record the visitor’s details
• a ‘tax-free’ tag will be affixed to the back of the sales receipt by the shop assistant
• a digital tax-free form will be generated
• the traveler should ensure validation of the transaction at the airport within 90 days from the date of purchase
Please refer to the Official Portal of the UAE Government for more details on VAT refunds for tourists.