VAT in Dubai

Tourists VAT (Value Added Tax) Refunds Scheme in UAE

In early 2018, the UAE government has introduced VAT in the country where most of the purchases and expenses will fall under  5% VAT. Being a tourist destination, the UAE government decided to provide tax refund in Dubai and UAE for tourists. It was implemented in November 2018. 

Tourists can get a tax refund in Dubai and other Emirates by submitting invoices of the purchases made.

Check: Start Saving on VAT with these 10 Best Tips given by Financial Advisors

Who are eligible to claim a tax refund?

People who are not UAE residents and have visited UAE on a tourist Visa are eligible for the tax refund on every purchase made in the UAE. However, residents of other GCC like Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman are not eligible.

How to claim Tax refund in Dubai and UAE?

While making a purchase anywhere in the UAE, you can ask the retailer to provide a tax free tag.

  • The retailer will enter your information in the Digital TAX refund system claiming for VAT refund
  • They will provide the tourist with a TAX free tag
  • At the validation point, you can get the claim validated while leaving the UAE.

FTA(Federal Tax Authority) has partnered with global taxation organization called “Planet”. There would be “Planet Payment” outlets available at international airports all over UAE will act as the validation points. Tourists need to visit any of these Planet outlets in the UAE and provide invoices of the purchases made and validate your claim.

Also, check: What will be taxed in UAE?

How to track the Tax refund in UAE?

Tourists who claimed Tax refund in Dubai or other Emirates can track their refund status using the VAT teg issued by the merchant during the purchase.

  • Scan the QR code on the TAX FREE tag using your smartphone camera
  • You will be provided with a link which gives the status of your tax claim

TAX refund in Dubai and UAE status

The following statuses will be given that is related to the tax refund claim

  • Issued – This means the tourist have applied for tax refund claim and the validation is not done yet
  • Export validated – Once the goods are validated, you can either select “cash” or “card” options to get the payment
  • Waiting for goods validation – Goods will be validated at the validation points
  • Payment in progress – The refund will be sent to you in 10 days once the goods are validated. Assuming you have selected the “card” option
  • Paid – After your refund is credited on your card
  • Cancelled – Your tax-free tag has been cancelled. In such cases, you can contact customer support to know the reason for cancellation.
  • Declined – Your refund has been declined. In such cases, you can contact customer support to know the reason for the decline.

Points to look out before claiming TAX refund:

  • The items being claimed for tax refund must be bought in UAE
  • Items bought must leave UAE within 90 days of purchase date
  • Goods like car, boat, aircraft, etc., are not liable for the tax refund if you are leaving the country in it
  • Must provide an invoice for the purchase to claim the refund  

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