UAE tourists can now reclaim VAT without receipts, here’s how
A step-by-step guide for shoppers to paperless refunds
The United Arab Emirates (UAE) has introduced a streamlined VAT refund process for tourists, allowing them to reclaim the 5 percent Value Added Tax (VAT) paid on eligible purchases – even without keeping paper receipts.
This innovative approach, overseen by the Federal Tax Authority (FTA), connects retailers and departure points through an entirely digital system.
Here’s your complete guide to navigating tax-free shopping in the UAE, ensuring your shopping experience is both rewarding and stress-free.
What is Tax-Free Shopping?
Tax-free shopping enables tourists to recover VAT on goods purchased in the UAE, provided the items are exported and certain conditions are met. VAT refunds are available for purchases validated at departure within 90 days.
Key requirements include:
- Goods must be purchased from a retailer in the 'Tax Refund for Tourists' scheme.
- Goods must accompany the tourist during departure.
- Refund claims must be made within one year of purchase validation.
Paperless VAT Refund
Under the digital tax refund system, tourists no longer need to keep traditional receipts. Planet, the FTA’s exclusive operator for this scheme, links participating retailers with ports of exit to create a seamless refund process.
Steps for a Hassle-Free Refund
Here's three easy steps for a hassle-free VAT refund:
1. Shopping Tax-Free
Tourists must request a ‘tax-free’ purchase at participating stores, ensuring:
- A minimum spend of Dh250.
- A valid travel document (passport) for the Planet system.
The shop assistant will issue a digital tax-free form and attach a 'tax-free' tag to the receipt.
2. Validating Purchases
Before departure, tourists must validate their purchase through:
- Self-service kiosks at airports, seaports, or land borders.
- Staff-assisted ‘Tax Free’ validation counters.
Required documents include:
- Tax invoices with 'tax-free' tags.
- Passport.
- Credit card details (if opting for card refunds).
3. Collecting the Refund
Refunds can be collected in:
- Cash (up to Dh10,000 per day).
- Credit card or digital wallet (processed within nine days).
Note: Only 85% of the VAT amount is refunded after a processing fee of Dh4.80 per tax-free tag.
Who can claim VAT Refunds?
Tourists aged 18 and above, who are not UAE residents, are eligible.
Purchases must:
- Be for personal use and exported from the UAE.
- Meet the conditions of the refund scheme.
However, VAT refunds are not applicable for:
- Goods consumed in the UAE.
- Motor vehicles, boats, or online purchases.
Where and When to validate refunds?
Tourists must validate their claims within 6 hours before departure. Facilities are available across major ports, including Dubai International Airport’s three terminals. Check out the FTA’s official site or Planet’s support at validation points.
This digital initiative enhances the UAE’s reputation as a top shopping destination. By simplifying the refund process, the UAE encourages visitors to indulge in tax-free retail therapy, making their travels more affordable and enjoyable.
Plan your UAE shopping spree today and reclaim your VAT without the hassle of receipts!