Tourists Can Now Claim VAT Refunds on UAE Online Purchases
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The UAE has rolled out a new system allowing tourists to claim VAT refunds on online purchases, further enhancing its position as a global shopping destination and advancing its digitalisation goals.
How the VAT Refund Works
The Federal Tax Authority (FTA), in partnership with Planet, the authorised VAT refund operator, announced that tourists can now request refunds for the 5% VAT applied to e-commerce purchases. To qualify, tourists must submit their travel documents during the online purchase process. Verification is completed during delivery or online order fulfilment, ensuring a seamless digital experience.
The FTA has also introduced a shoppers’ portal where tourists can verify their invoices, making the process quicker and fully digital.
Supporting Dubai’s Tourism and Digital Goals
This update aligns with the UAE’s ongoing efforts to strengthen its tourism sector and embrace digital solutions. The system complies with the UAE’s tax regulations while enhancing convenience for visitors.
VAT Refund System Then and Now
The UAE introduced a 5% VAT in January 2018 on most goods and services. Later that year, tourists spending at least AED 250 on in-store purchases became eligible for VAT refunds through dedicated kiosks across the country.
Since then, the system has seen major upgrades. In 2019, self-service kiosks were introduced to simplify refund claims at airports. By 2022, the process became paperless, eliminating the need for physical receipts.
A Seamless Shopping Experience
Tourists visiting the UAE can now enjoy a more convenient shopping experience, whether they shop in-store or online. This move not only boosts the UAE’s tourism appeal but also reflects its commitment to innovation and digital transformation.