Since the implementation of VAT in the UAE, tourists are allowed to claim refunds on certain purchases of taxable goods if they meet the eligibility criteria. Getting a VAT refund in Dubai or anywhere else in the country is the responsibility of the individual making the purchase, and cannot be processed once the deadline has passed.
VAT in UAE
There has been a 5% VAT in UAE since 2018. This rate is applicable to most goods and services, making it one of the lowest VAT rates in the world. Businesses are also required to collect VAT from their customers and file VAT returns by the deadline. Failure to file on time can result in VAT fines.
Who Qualifies for the VAT Refund in UAE?
Only non-residents of the UAE can get a refund on the VAT. Other conditions include:
- Over 18 years of age
- Not be a crew member of an aircraft or ship
- Have a minimum purchase of AED 250 from a store participating in the Tourist Tax Refund Scheme
- The purchased goods are unopened
This makes all tourists eligible for claiming the VAT refund. The deadline to claim the refund is 90 days from the date of purchase. Once this deadline has passed, there is no way to get a VAT refund in Dubai for tourists.
The following are not eligible for the VAT refund in Dubai or anywhere in the UAE:
- Services
- Goods that have been used or consumed (even partially)
- Goods that are not travelling with the individual
- Boats, aircrafts, motor vehicles
You may be able to claim a VAT refund on a non-perishable item if you still have the original packaging, even if it is used. Always make sure that the store you’re buying from is classified as “tax-free.” Most establishments will have it clearly indicated on their storefront, but you can always clarify with the customer service representative.
If you’ve made a purchase online, you can claim a VAT refund in UAE from the site itself, by providing your relevant identification details. This way, your refund request will be recorded before your items have been shipped.
How Much is the Fees of VAT Refund ?
The Authority may charge fees to the Overseas Tourist as per the following:
- An administrative fee amounting to 13% per cent of the amount of VAT to be refunded to the Overseas Tourist;
- A fixed fee of AED 4.80 per refund claim
How to Claim VAT Refund in UAE For Tourists
The Federal Tax Authority (FTA), in collaboration with Planet, handles all the VAT refunds in UAE. You can claim your refund in three ways:
- With a digital invoice
- With photo verification
- With a tax-free tag
Digital invoice | Receive your tax invoice through email from the retailer after presenting your passport |
Photo verification | Retailer uploads a photo of your invoice to Planet for verification. In case of a failed verification, You must resolve the issue with the retailer before you leave the country. |
Tax-free tag | Retailer will attach a tax-free sticker to your tax invoice and link it with your passport. |
If the retailer has not registered with Planet, any purchase you make at their store is not eligible for a VAT refund. Make sure that the name on the invoice is the same as your passport and/or ID card.
VAT Refund Locations
You can claim VAT refund in Dubai airport in any of the terminals. There are in-person desks at every exit point in the UAE. You can also use the self-service kiosks located in certain malls and hotels.
In certain cases, you might be asked to present the purchased goods at the time of claiming the refund, so make sure to complete the process before you check-in your luggage.
Airports | Dubai Airport, Al Maktoum Airport, Zayed International Airport, Al Ain Airport, Sharjah Airport, Al Fujairah Airport, Ras Al Khaimah Airport |
Land ports | Al Hili Al Ain, Hatta, Al Ghuwaifat, Khatmat Malaha, Al Madeef Al Ain |
Sea ports | Fujairah Port, Port Khalid, Port Rashid, Port Zayed |
VAT Refund Documents
You will need to present the following documents along with the purchased goods (in its original packaging) to claim your VAT refund in UAE:
- Tax invoice with refund tag (either physical copy or digital)
- Original Passport
- Ticket booking confirmation of departure from the country (if travelling by plane or sea)
- Boarding pass (showing departure within 24 hours)
Apps for VAT Refund in UAE
For those planning to do a lot of shopping in the UAE, you can track your purchases to make getting a VAT refund easier. You can use either of two apps:
- Planet Shopper Portal
- Planet Tax Free ME
You can download the app after you make a purchase and register with your phone number. Both apps offer the following features:
- View digital transactions
- View invoices issued by retailers
- Link a card to an account
- Total your VAT refund amount
VAT Refund Processing Time
If you’ve requested a cash refund, you will receive it instantly from the cash collection desk at the exit point before you depart from the country. Credit card refunds can take up to nine days to be processed. Online refunds will only be processed once you exit the country.
Claim Your Refund Before You Leave the Country
Getting a VAT refund as a tourist in UAE can be a simple process, as long as you keep your invoices organized and have all the documents you need to make your claim. You cannot get a VAT refund without validating your purchase at an exit point, so allocate the necessary amount of time to complete the process before you leave the country.
If you’re interested in starting an e-commerce business to sell products or services to the regional market, you’ll probably need to complete VAT registration in UAE. Our experts can handle all your UAE tax needs, from corporate tax compliance to helping you file your VAT returns.
