Tourists in UAE will now get VAT refund: Here's the latest rule
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Dubai: Tourists who arrive on a visiting visa can now claim a refund for the Value Added Tax (VAT) paid on the purchases they made during their stay in the United Arab Emirates. However, the first step is to check whether you are eligible for a refund.
Keep these points in mind
1) The applicant should not possess a resident visa in the UAE
2) He/she should not be a crew member on a flight.
3) The person should be above 18 years of age.
4) The stores from where the purchase is made should be registered with UAE’s VAT refund program. Tourists must ensure this before making the purchase.
5) A refund can be made only if the claim is made within 90 days of the purchase date.
6) The applicant should possess the goods on which he/she claims the refund.
The VAT refund system for tourists is exclusively operated in the UAE by Planet Payment. For this, kiosks or tax validation centres have been opened at various points of exit, such as airports, seaports, and land borders. Tourists could claim the refund even if they do not have the bill of purchase, as most stores in the UAE no longer give paper bills. The bills are often sent to the customer’s email ID as e-copies.
Although the tax refund system has been in place since 2018, the Federal Tax Authority adopted the digital VAT refund system in 2022. This system was launched to make VAT refund claims hassle-free for tourists who arrive in the country. Most retail shops are now registered with the scheme.
Paperless VAT refund
The tourist could ask the shop assistant to add their passport details while purchasing for a VAT refund. The customer's passport and mobile numbers will be added to the digital tax-free system. The customer will then receive the tax invoice as well as the tax-free tag via SMS. The tourists need to purchase goods for at least 250 Dirhams to be able to claim the tax refund.
However, some stores still provide paper bills. These paper bills should be presented along with the tax-free tag at the kiosks at the exit points. The Planet Shopper portal can be accessed by scanning the QR code on the tax-free tag. The goods and products purchased by the tourists could be tracked on this portal. Besides, the tourist could also learn about the various stages of the VAT refund process.
How to validate the tax-free purchase
1. Before checking in the luggage, the goods and the tagged invoice should be taken to one of the validation points at the points of exit.
2. If you are using the self–service kiosk, you should scan your passport or GCC ID first, or you should manually type in your passport number. Follow the instructions on the screen, and if you get a green light, you have completed the validation process. If you get a red light, contact Planet staff at the validation centre for assistance.
3. After completing the validation process, choose the preferred refund method. You can claim the refund on your credit or debit card, as cash, or in your digital wallet.
VAT refund centres in the UAE
The Planet validation centres at airports, seaports, or land borders should be visited before checking in luggage, as the goods may need to be inspected by the validation staff before the refund is issued.
Airport locations
1. Zayed Internation Airport, Abu Dhabi
2. Dubai Airport (terminals 1, 2 and 3)
3. Al Maktoum Airport
4. Sharjah Airport
5. Al Ain Airport
6. Ras Al Khaimah Airport
7. Al Fujairah Airport
Land borders
1. Al Ghuwaifat - At the border with Saudi Arabia
2. Al Hili al Ain – At the border with Oman
3. Al Madeef al Ain – At the border with Oman
4. Hatta – At the border with Oman
5. Katmat Malaha – At the border with Oman
Seaports
Port Zayed – Abu Dhabi
Port Rashid – Dubai
Port Khalid - Sharjah