In the case of non-resident tourists, UAE VAT law allows the recovery of Value Added Tax (VAT) under specific conditions. It is important to note that not all visitors are eligible to receive a VAT refund in the UAE.
The FTA has outlined specific requirements that establish the eligibility criteria for qualifying individuals to claim a VAT refund for tourists in UAE:
- He/she must not be a resident of the UAE.
- Must not be an air crew member departing from the country.
- The visitor must depart from the UAE within 90 days of the transaction date.
- The exports must be exported out of the UAE within 90 days from the transaction date.
- The transaction to be bought from a VAT-refund-participating registered trader.
Individuals who reside in the UAE or have been visiting the country for more than 90 days are not eligible to claim a VAT refund. Additionally, purchases made from retailers that are not registered under the UAE’s VAT refund scheme for tourists do not qualify for a refund.
How to Get a VAT Refund for Tourist in UAE
The process include:
- Shopping from Registered Retailers: One is to buy from stores registered under the “Tax Free Shopping” scheme. Such stores typically have a “Tax Free” sticker or notice on their premises.
- Tax Invoice Request: At the time of purchase, request for an electronic tax invoice with your passport information and itinerary.
- Get the VAT Refund Tag: The claim tag for tax refund will be given by the retailer, which is affixed on the invoice and identification.
- Check the Refund at the Airport: Passengers need to check the VAT refund claim while submitting the goods, original invoice, and passport at the airport or other authorized exit points.
- Choose Refund Option: Passengers can opt to have the refund loaded on a credit card or as cash. Cash refunds are, however, subject to a maximum (usually up to AED 7,000).
What Products are Eligible for VAT Refund for Tourist in UAE
All shopping in the UAE is excluded from a VAT refund. For the FTA, the above conditions must be met by the goods:
- Bought from a scheme-participating registered store
- Not consumed or used prior to exiting the UAE
- Taken out of the country within 90 days
- Available for inspection physically at the validation time
- The most common goods that qualify include:
- Jewelry and watches
- Clothing and accessories
- Perfumes and cosmetics
- Electronics and gadgets
- Souvenirs and pieces of art
The tourist VAT refund is valid only for goods and not services such as stay in hotels, meals at restaurants, car hires, or event tickets. It also does not cover goods which are not in fact exported outside the country.
Where Can You Get VAT Refund for Tourist in UAE
The VAT refund facility is available at all major international airports and border exit points across the country, including:
- Dubai International Airport (DXB)
- Abu Dhabi International Airport
- Sharjah International Airport
- Al Maktoum International Airport
- Border points like Hatta, Al Ghuwaifat, etc.
These places have Planet-managed electronic kiosks for real-time VAT refund checks. Trained staff members also accompany these with them to overcome any difficulty or manual verification.
To finalize the refund process, tourists must validate their purchases within 90 days and leave the country with the goods. Failure to do so within the period will have the claim revoked.
How to Claim VAT Refund in UAE for Tourist
The procedure of how to claim VAT refund in UAE for tourist is quite simple if all is done under the rules:
- Ensure You Shop at Registered Outlets: While shopping, ensure you look for the “Tax Free” logo. The outlets are registered under the scheme.
- Provide Passport Details: Provide your passport upon making the purchase to link the purchase to your travel record.
- Obtain the Refund Receipt and Tag: Ensure you obtain the refund claim document, which is linked electronically as a matter of course.
- Pre validate Before Travel: Visit a Planet kiosk or VAT refund counter at the airport to complete your claim. You will need to scan your passport, boarding card, and possibly show you the goods you bought.
- Get Your Refund: Cash or credit card. Refunds will appear in 10–15 business days on your card.
Tourists are encouraged to arrive early at the airport and undergo validation before presenting the goods with baggage for check-in, especially if the goods are to be checked.
Limits and Fees for VAT Refunds for Tourists
While UAE VAT refund for tourists is a wonderful advantage, it has some administrative fees and limitations:
- Minimum Spend Level: One purchase must be AED 250 or higher to qualify.
- Service Fee: The refund operator deducts a minimal fee (usually 15% of the VAT amount).
- Maximum Cash Refund: Tourists can receive a maximum cash refund of AED 7,000. Anything above that must be refunded via a credit card.
Having these limits makes the tourists set realistic expectations for the refunds and avoids shocks at processing.
Benefits of UAE VAT Refund for Travelers
Dubai VAT refund and in the UAE has numerous benefits:
- Tax Relief: Can obtain 5% value of qualifying purchases refunded.
- Spur Shopping: Makes UAE a world favorite shopping spot.
- Convenience: End-to-end electronic process with kiosks at various exit points.
- Security: Offers credit card refund points for secure transactions.
- Boosts Tourism Revenue: Promotes repeat visits and a good international image.
By following the correct procedures, making purchases from authorized retailers, and ensuring proper documentation prior to departure, foreign visitors can fully capitalize on the benefits of the program.
FAQs on VAT Refund for Tourist in UAE
Q1. How a tourist in the UAE is entitled to a VAT refund?
You should be a non-UAE resident, purchase from registered traders, and export the items within 90 days of purchase date. Except for receiving VAT refunds are the crew members of airlines.
Q2. Is VAT refundable to a tourist in the UAE?
Tourists can recover the 5% VAT charged on eligible purchases, minus a small service fee. The highest cash refund for each person is AED 7,000, though more can be refunded by credit card.
Q3. Where are the refund claims of tourists to be submitted in the UAE?
VAT refund claims can also be obtained at all major airports in the UAE, including Dubai International Airport, Abu Dhabi International Airport, and border points through Planet-operated electronic kiosks.
Q4. What do travelers need to get VAT refund in the UAE?
Travelers need to submit their passport, original purchase receipts, refund claim tag, and sometimes the purchased article itself while going out for verification and inspection.
Q5. Is there any shopping for which visitors can obtain VAT refund?
No, VAT refund can be obtained only on tangible merchandise shipped outside the nation. Hotel stays, dining at restaurants, or functions are never refundable as a VAT refundable.
Also Read: How to Claim VAT Refund For Exports in Dubai
