Can visitors to the UAE claim back tax on their purchases?

It is nine months since the UAE introduced VAT, and the good news for tourists is that they will soon be able to claim the tax back. But how?

Here is a guide to everything you need to know about the VAT process for non-residents:

Q

When will tourists be able to claim back VAT on their purchases? A

An “advanced integrated digital system” to refund VAT to non-residents is under construction and will be operational from November 18.

Will all tourists in the UAE be able to claim their VAT back? The only exceptions will be residents of other Gulf Co-operation Council countries: Saudi Arabia, Kuwait, Bahrain, Oman and Qatar.

What goods and services can tourists claim tax back on?

A good rule of thumb is that you can claim the VAT back on goods that you take with you when you are leaving the country, said David Daly, a partner at the Gulf Tax Accounting Group in Fujairah.

“The exceptions are the car, boat or aircraft you buy and leave the country in,” Mr Daly said. Goods must be bought from outlets registered under the programme and the items must not be exempt from a VAT refund.

Are there any other rules? The goods must have been bought within the UAE borders, and the tourist and items must leave the country within 90 days from the date of purchase.

How can tourists claim VAT back?

The Federal Tax Authority has joined up with a global tax-back organisation called Planet, which will manage the process. Merchants registered with Planet will “clearly communicate this to purchasing tourists”, Mr Daly said.

“A merchant will issue a tax free tag to the tourist, attaching it to a sales receipt. This is associated with the tourist’s passport and a digital tax free form will be completed,” Mr Daly said.

Where can you claim tax back?

Special points will be provided where tourists can easily reclaim taxes, according to FTA Director General Khalid Ali Al Bustani.

Before checking in at the airport, tourists will visit one of the various Planet points and, once validated, they can decide on the method by which they will receive their refund.

What sort of paperwork will tourists have to fill out? Aside from the physical receipt from a merchant, the process will be entirely online, Mr Daly said.

What evidence do you need to show to prove you are a tourist?

Your passport, which will display an entry stamp and lack a UAE or other GCC residency visa, will be enough.

How is the UAE trying to make it easier for tourists to claim the tax back?

The UAE government is taking steps to streamline the process and minimise the effort required from the tourist, Mr Daly said. “They are here on holidays,” he said.