Tourists in UAE can get VAT refund from Nov 18
dubai — Come November 18, tourists will be able to claim VAT refunds of their purchases in the UAE, which will attract more tourists and also improve retail sales in the country.
Initially, tourists will be able to claim refund from Dubai, Sharjah and Abu Dhabi airports. From December 15, tourists leaving the UAE can claim refund from all airports, as well as land and sea ports in the country, the Federal Tax Authority (FTA) said on Monday.
In September, Khaleej Times reported that tourists can claim refund within 90 days of their purchase on a minimum spend of Dh250.
Khalid Ali Al Bustani, directorgeneral, FTA, revealed that more than 4,000 outlets will be connected electronically to the system, clarifying that only the invoices issued by retail outlets registered in
the scheme and connected to the system are eligible for a refund.
The eligible retail outlets can be identified with posters displayed on their storefronts and visible to visitors.
Tax experts said tourists must carry passports or passport copies while going out for shopping in the UAE as certain details would be required to be uploaded in the system in order to issue a VAT refund tag to tourists.
It is estimated that tourist spend in the UAE will increase from Dh154 billion in 2017 to Dh205.5 billion in 2022.
The FTA system is likely to be easier and more userfriendly than in some European countries The entire refund process will be undertaken electronically and seems quite simple
dubai — The tourist VAT refund scheme will come into effect from November 18 in the UAE. This move is expected to attract more tourists into the country and also improve sales for retailers.
Tax experts have called the scheme user-friendly for tourists but they have to fulfil certain criteria related to document submission. In the first phase, tourists can claim refunds from Dubai, Sharjah and Abu Dhabi airports. From December 15, they can claim refunds at all airports as well as all land and sea ports.
So far, over 4,000 outlets have registered for VAT refund. This means tourists will be able to claim a VAT refund if receipts have been issued only by those retailers that are registered with the Federal Tax Authority (FTA). In order to help tourists, eligible outlets can be identified with posters displayed on their storefronts and visible to visitors.
As reported by Khaleej Times earlier, the
Thomas Vanhee, Partner, AuriferMiddle East Tax
Nimish Goel, Partner, WTS Dhruva Consultants