Authority tells retailers to register for tourist VAT refund plan

Shop owners have been invited to register for a scheme providing VAT refunds for tourists, which will be introduced this year.

Places will be set up where tourists can apply for a refund and be easily reimbursed.

The Federal Tax Authority yesterday said membership in the Tax Refund Scheme for Tourists would be revoked if retailers failed to meet obligations.

The authority also outlined conditions that must be met before connecting to the scheme.

They include that the retailer is registered with the authority for VAT and has a tax registration number, the goods sold must not be excluded from the refund scheme and the retailer must submit a request to take part in the programme.

Traders must also meet the financial credit requirements specified by the system operator, be committed to submitting tax returns and pay due taxes regularly.

There had been a surge in demand for registration in the scheme, said FTA Director General Khalid Al Bustani.

Workshops and seminars have been organised by the FTA along with Planet, the operator of the refund system, to introduce retailers to procedures that will connect them to the digital network.

A meeting will be held between the system operator and representatives of retail shops on Tuesday in Ajman, followed by meetings with the chambers of commerce and industry in Abu Dhabi and Dubai.

Retailers will then be provided the technology to link their outlets to the scheme.

The measures follow a July Cabinet decision that defined procedures to refund VAT to visitors to the UAE, Mr Al Bustani said.

He said the integrated system would provide a direct connection to all shops and outlets across the UAE.

“The system operator will co-ordinate between retailers registered in the tax system and connect them with ports of entry and exit all around the UAE,” he said.

“This, in turn, allows tourists who are eligible for a tax refund to request a refund for taxes incurred on their purchases through a stateof-the-art digital system.

“The scheme creates designated places for tourists to apply for a tax refund and easily recover the eligible refundable amounts, which will be accurately calculated through the advanced digital system.”

Gary Byrne, a director at Planet, reported “strong enthusiasm” from retailers, outlets and shops across the country.

He asked retailers to connect by using a merchant application portal that can be accessed by visiting the website www.planetpayment.ae.