VAT Refund for Tourists in UAE: A Complete Guide

The UAE introduced Value Added Tax (VAT) at a rate of 5% in January 2018, applied to most goods and services. To make shopping more appealing for tourists, the UAE provides a VAT refund scheme for tourists and visitors, allowing them to reclaim VAT paid on eligible purchases during their stay. This guide covers everything you need to know about the VAT refund process, eligibility, and how to make the most of your shopping experience in the UAE.

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What is VAT Refund for Tourists?

VAT is a consumption tax levied at each stage of the supply chain, from production to sale. In the UAE, tourists can claim a refund on VAT paid on purchases made during their stay. The refund system, operated by Planet in cooperation with the Federal Tax Authority (FTA), connects registered retailers with all ports of entry and exit from the UAE, making the process fully integrated and streamlined.

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Eligibility Criteria for VAT Refund

To qualify for a VAT refund in the UAE, tourists must meet these criteria:

• Non-Residency: Tourists must be non-residents of the UAE. GCC nationals who are not residing in the UAE are also eligible, but UAE nationals studying abroad may face restrictions.
• Age Requirement: Tourists must be at least 18 years old and not a crew member on a flight or vessel departing from an implementing state.
• Retailer Participation: Purchases must be made from retailers that are part of the "Tax Refund for Tourists Scheme."
• Minimum Purchase Amount: The total purchase amount must be at least AED 250.
• Goods Not Consumed: Items must not be consumed, either fully or partially, within the UAE. Certain goods, such as motor vehicles, boats, aircraft, and services, as well as goods not in possession upon departure, are excluded from the refund scheme.
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How Much VAT is Refunded?

Tourists can reclaim 87% of the VAT paid, with a fee of AED 4.80 deducted per tax-free tag attached to each receipt. The maximum cash refund allowed is AED 35,000. Refunds can be issued in cash (up to the limit), to a credit card, or through digital platforms such as WeChat, depending on the tourist's preference.
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How to Shop Tax-Free in the UAE

To make tax-free purchases, tourists should follow these steps:

1. Check Retailer Participation: Verify that the store is part of the Tourist Refund Scheme by looking for "Tax-Free" signs or asking the retailer.
2. Minimum Purchase Requirement: Ensure your purchase meets the minimum amount of AED 250.
3. Present Travel Documents: Show your passport or GCC national ID at the time of purchase. The shop assistant will scan your travel document, attach a tax-free tag to your receipt, and create a digital tax-free form.
4. Keep All Documentation: Retain all invoices, receipts, and tax-free tags, as these will be required at the point of departure for validation.
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Methods of Shopping Tax-Free

There are three methods available for tax-free shopping in the UAE:

• The Paperless Method: Fully online, with digital invoices sent via email. Physical tax invoices are not required at the validation point.
• The Snapshot Method: A photo of the tax invoice is taken and uploaded to the system. If verification fails, you must resolve the issue with the store before departure.
• The Tag Method: A tax-free tag (sticker) is affixed to the invoice, linking it to your passport or GCC ID. The physical tax invoice must be presented at validation.
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How to Get VAT Refund in the UAE

To collect VAT refunds, tourists must validate their purchases at various exit points in the UAE, such as airports, seaports, and land borders. Here’s how to claim your VAT refund:

Validation Process

• Self-Service Kiosks: Available at airports, select shopping malls, and hotels. You will need to scan your passport or manually enter details. An online boarding pass indicating departure within the next 24 hours is required if using kiosks in malls or hotels.
• Manned Validation Desks: Located at airports, seaports, and land borders. Planet staff will assist in the validation process. If your purchases require inspection, present your goods along with the tax-free tags and receipts.

Choose Your Refund Method

• Cash: Available immediately at participating foreign exchange providers after passport control.
• Credit/Debit Card: Refunds typically take up to nine days to process.
• Digital Wallets: Options like WeChat are available for digital refunds.

Locations for VAT Refund Collection

Tourists can validate and collect their VAT refunds at:

• Airports: Dubai International (Terminals 1, 2, 3, and 3 Business), Abu Dhabi International (Common area between all terminals), Al Maktoum, Sharjah, Al Ain, Ras Al Khaimah, Al Fujairah.
• Seaports: Port Zayed (Abu Dhabi), Port Rashid (Dubai), Port Khalid (Sharjah), Fujairah Port (Fujairah).
• Land Borders: Al Ghuwaifat (Saudi Arabia border), Al Hili Al Ain (Oman border), Al Madeef Al Ain (Oman border), Hatta (Oman border), Khatmat Malaha (Oman border).

These locations are equipped with Planet's self-service kiosks and manned validation desks to assist tourists in validating their tax-free purchases before departure. It’s important to visit these validation points before checking in your luggage, as goods may require inspection by Planet staff.

Time Limits for Validation

Goods must be exported from the UAE within 90 days of the purchase date to be eligible for a VAT refund. For example, if your purchase was made on April 1st, you must export your goods by June 30th to claim your refund. Failure to meet this timeline will result in forfeiture of the refund on those purchases.
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FAQs: VAT Refund for Tourists in the UAE

1. What is the VAT Refund for Tourists in the UAE?
The VAT Refund for Tourists is a system that allows tourists to reclaim the VAT paid on eligible purchases made during their stay in the UAE. It’s managed by Planet in partnership with the UAE’s Federal Tax Authority.

2. Who is eligible for a VAT refund in the UAE?
To qualify, tourists must:

• Be non-residents of the UAE (GCC nationals not residing in the UAE are eligible).
• Be at least 18 years old.
• Make purchases from retailers participating in the Tourist Refund Scheme.
• Meet a minimum purchase amount of AED 250.
• Ensure the goods are not consumed or used in the UAE.

3. Are there any items that are not eligible for VAT refunds?
Yes, certain items, like motor vehicles, boats, aircraft, services, and goods that are not physically carried out of the UAE, are excluded from the refund scheme.

4. How much VAT can tourists reclaim?
Tourists can reclaim 87% of the VAT paid, with a fee of AED 4.80 per tax-free tag attached to each receipt. The maximum cash refund limit is AED 35,000.

5. What are the methods for shopping tax-free in the UAE?
Tourists can shop tax-free using one of these methods:

• Paperless Method: Digital invoices are emailed, and no physical invoices are required.
• Snapshot Method: A photo of the tax invoice is uploaded.
• Tag Method: A tax-free tag is attached to the invoice, which must be presented at validation.

6. How can I validate my purchases for a VAT refund in the UAE?
Validation can be done at self-service kiosks or manned desks at airports, seaports, and land borders. An online boarding pass showing departure within 24 hours is required if validating at kiosks in malls or hotels.

7. What options are available for receiving the VAT refund?
Refunds can be received:

• Cash: Available immediately at exchange providers after passport control.
• Credit/Debit Card: Processed within nine days.
• Digital Wallets: Options like WeChat are available for digital refunds.

8. Where can tourists validate their VAT refund in the UAE?
Validation points include:

• Airports: Dubai International, Abu Dhabi International, Al Maktoum, Sharjah, Al Ain, Ras Al Khaimah, Al Fujairah.
• Seaports: Port Zayed, Port Rashid, Port Khalid, Fujairah Port.
• Land Borders: Al Ghuwaifat, Al Hili Al Ain, Al Madeef Al Ain, Hatta, Khatmat Malaha.

9. How soon must goods be exported for VAT refund eligibility?
Goods must be exported from the UAE within 90 days of the purchase date to qualify for a VAT refund.

10. What if there are issues during the validation process?
If validation fails at a kiosk, tourists should seek assistance from nearby Planet staff. If an inspection is required, it must be done at manned validation desks.

11. How can I make my VAT refund process smoother?

• Organize all receipts, tax-free tags, and related documentation.
• Validate purchases well before departure to avoid delays.
• Verify that the retailer is part of the Tourist Refund Scheme by looking for “Tax-Free” signs or confirming with staff.
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Additional Tips for Tourists

• Organize Receipts: Keep all your receipts, tax-free tags, and related documentation organized for an efficient refund process.
• Early Validation: Validate your purchases well before your departure time to avoid last-minute hassles.
• Check for Participating Stores: Always ensure that the store participates in the Tourist Refund Scheme by checking for “Tax-Free” signs or confirming with the retailer.
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Conclusion

The VAT Refund for tourists in UAE provides an excellent opportunity for visitors to enhance their shopping experience by reclaiming VAT paid on eligible purchases. By understanding the eligibility criteria, following the proper steps for validation, and organizing documentation, tourists can easily benefit from the refund scheme. Whether through cash, credit card, or digital platforms, the process is designed to be seamless, making the UAE a more attractive shopping destination. Take advantage of the VAT refund system and make your trip to the UAE not only enjoyable but also economically rewarding.

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