UAE has introduced a New VAT Refund Scheme for Online Shopping, allowing tourists to claim refunds on e-commerce purchases made during the stay. This system is announced by Federal Tax Authority (FTA) which is first of its kind in the world.
In Collaboration with Planet the authorized operator of the VAT refund system for tourists, the FTA explained in a press release that aligns with the Authority’s plans to adopt proactive solutions within the framework of innovation and digital transformation.
The Plan includes platforms and e-commerce retailers registered with the Authority in the “VAT Refund for Tourists on E-Commerce Purchases” system during their stay in the UAE.
How the New VAT refund scheme for Tourists shopping online work?
The New VAT Refund Scheme is completely paperless, offering tourists a fully digital experience.
Once you have made the purchases,
- Scan your Passports
- Complete Purchases Transactions
- And instantly receive digital invoices.
Tourists can also easily verify their invoices through the shoppers’ portal, ensuring a hassle-free shopping experience with quick and fully digitalized VAT refund procedures for eligible purchases.
How To Claim your VAT Refund on E-commerce Purchases?
- Tourists in the UAE can directly apply for VAT refunds by Choosing from e-platforms registered with the FTA before your purchases are shipped.
- Once you’ve decided on the e-platforms registered with the FTA, share your travel document and personal information during checkout to verify your eligibility.
- And after your eligibility is verified the VAT refund process is completed upon delivery or online order fulfilment.
The VAT refund procedures are processed smoothly, quickly, and efficiently, from the moment of purchase until the refund is completed when the tourist departs the country.
Khalid Ali Al Bustani, Director-General of FTA, stated, “We are proud of the success of the Federal Tax Authority in launching the world’s first electronic system that enables tourists to recover VAT on their e-commerce purchases during their stay in the UAE. This is part of the Authority’s ongoing efforts to develop its systems and provide innovative services that set global benchmarks.”
Eligibility Criteria to Claim VAT Refund in UAE
- To be eligible for a VAT refund, ensure your purchase is at least AED 250.
- At the store, ask the shop assistant for a tax-free purchase.
- Present a valid travel document for scanning to complete the process.
- A digital tax-free form will be created for your purchase.
- To claim your refund, validate the transaction at the airport within 90 days of your purchase.
Conditions to Claim VAT Refund in UAE
Tourists can claim VAT Refund under the following conditions:
Eligibility Criteria:
- The tourist must be at least 18 years old.
- The goods must be purchased from a participating retailer in the ‘Tax Refund for Tourists’ scheme.
- The goods must not be excluded from the refund scheme by the FTA.
- The tourist must present the tax invoice, the ‘tax-free’ tag, and the relevant goods at the airport
Important NOTE:
- Refunds do not apply to goods that have been consumed in full or part within the UAE.
- Goods that are not in the possession of the tourist when leaving the country
Khalid Ali Al Bustani, Director-General of FTA, stated “This new achievement enhances the effectiveness of the pioneering digital VAT refund system for tourists, serving as one of the mechanisms that reflect the UAE’s sophisticated image as a top international tourism destination. The country is distinguished by its safe environment, hospitable people, and diverse attractions, events, and tourist facilities. The system has received high satisfaction and praise from tourists for its simplicity, efficiency, and speed in processing VAT refunds for eligible tourists.”
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Chrislyn Stephanie is a passionate explorer who finds joy in discovering new destinations and sharing her experiences with others. With a keen eye for detail and a love for adventure, Chrislyn captures the essence of each destination through vivid descriptions and captivating narratives.
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