Since VAT started in the UAE, the Federal Tax Authority (FTA) has made it possible for tourists to get a tax refund. This is done through an electronic system that makes claiming VAT back easy and fast. The goal is to make shopping in the UAE more enjoyable for tourists. Below, we explain the tax refund process in detail.
How Does the Tourist Tax Refund Scheme Work in UAE?
Tourists can claim VAT refunds when they buy goods from retailers registered under the tourist tax refund scheme. This scheme is managed by Planet, a global operator approved by FTA. Retailers connected to Planet’s system can issue invoices with tax-free tags.
When buying, tourists must tell the shop staff about their intent to claim a refund. They show travel documents like passports or GCC National ID cards. Then, the retailer enters the purchase details into Planet’s system and adds the tax-free tag on the invoice. Tourists must keep this invoice safely, as it is needed when they claim the refund while leaving the UAE.
Are All Tourists Eligible for VAT Refund on Their Purchases in UAE?
No, only certain tourists can claim VAT refunds. Non-resident travelers aged 18 or above qualify for the refund. However, crew members on flights departing the UAE cannot claim the refund. GCC nationals have a special allowance and can also claim VAT refunds on their purchases.
Which Goods Are Not Eligible for VAT Refund if Bought by Tourists in UAE?
Some goods do not qualify for VAT refund even if bought by tourists. These include:
- Any mode of transport like cars, planes, or boats
- Goods consumed fully or partially in the UAE
- Goods not carried by the tourist when departing the UAE
Tourists should check the eligibility of their purchases before expecting a refund.
How Can Tourists Claim VAT Refund Before Leaving UAE?
Tourists can claim their VAT refund at validation counters located at UAE airports, seaports, or land borders. They need to show:
- Purchased goods
- Original invoice with tax-free tag
- Passport copies
- Credit card (if they want the refund on the card)
Tourists can choose to receive their refund either in cash or as a credit to their card. After validation, the refund is processed.
Other Important Factors in Claiming VAT Refund for Tourists in UAE
Tourists get back 85% of the VAT they paid. The remaining 15% is an administration fee kept by the system operator managing the scheme.
If tourists want a cash refund, the limit is AED 7,000 per day. But there is no limit when refunds go to cards. If you plan to shop a lot during your visit, it is important to understand these rules to manage your spending well.
How Mubarak Al Ketbi (MAK) Auditing Can Help You
Mubarak Al Ketbi (MAK) Auditing supports tourists and businesses in understanding VAT regulations and refund procedures. Our experts help you with tax registration, review, and compliance. We guide you through the entire refund process to ensure you get the benefits you deserve. When it comes to complex tax rules, “a stitch in time saves nine,” so get expert help to avoid problems later.
- For more information, visit our office:
Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates - Or contact/WhatsApp: +971 50 276 2132
