FTA Simplifies VAT Refunds for UAE Tourists – How it Works?

Traveling to the UAE is an exciting experience with luxurious shopping, beautiful sights, and unforgettable moments. But did you know that as a tourist, you could get some of that VAT (Value Added Tax) back on your eligible purchases? Thanks to the Federal Tax Authority (FTA), claiming VAT refunds has become easier, faster, and more convenient than ever. If you're wondering how the VAT refund services scheme works and whether you can benefit, you're in the right place!
 

What is the VAT Refund Scheme for Tourists?

The UAE’s FTA launched the Tourist Refund Scheme in 2018 to attract more visitors and encourage spending. It’s a simple program that allows eligible tourists to reclaim the VAT paid on certain goods they buy during their trip. Over the years, the scheme has seen updates and improvements adding digital kiosks, mobile app options, and quicker approvals making the process more seamless. These enhancements reflect the broader improvements in VAT services in UAE, aimed at creating a more efficient and tourist-friendly tax environment.

The idea is very clear: by refunding VAT on eligible purchases, the UAE aims to make shopping more attractive for international travelers also, it offers a small financial welcome upon departure.
 

Who can Claim a VAT Refund?

Not everyone can claim this refund; it's exclusively for non-resident tourists. Here are the key points:

• You must have purchased from retailers registered in the scheme (look for a ‘Planet Payment’ tag).
• You must validate your tax-free purchases within 90 days from the invoice date at a kiosk or desk before departure; your actual departure should occur within that validated period.
• You'll need your passport and the original tax invoices as proof of purchase.

Keep in mind, if you’re an expat or a resident, this scheme isn’t for you, it's tailored to visitors from outside the country.
 

How VAT Refund Process Works?

Wondering how to actually claim your VAT refund? It’s quite straightforward:

Step 1: Shop at Participating Outlets

Look for stores that display the ‘Planet Payment’ sign that are part of the scheme.

Step 2: Keep Your Receipts and Show Your Passport

At checkout, present your passport and ask for an original tax invoice. Keep all receipts, as they’re crucial for the refund process.

Step 3: Head to Airport or Seaport Kiosks

Before you catch your flight or boat, visit the self-service kiosks available at major airports and seaports.

Step 4: Scan Your Documents & Choose Refund Mode

Scan your purchase receipts and passport at the kiosk. You’ll then select whether you want the refund in cash or bank card.

Step 5: Instant Refund (If Approved)

Refund amount is credited to your card within up to 9 calendar days after validation, or processed instantly for cash at the kiosk.
 

What’s New and Better? The FTA’s Recent Simplifications 

The FTA has worked hard to make the VAT refund process more user-friendly. Some of the recent upgrades include:

• More digital kiosks installed at airports and malls for quicker processing.
• Smart verification technology to speed up approvals automatically.
• Mobile app integration now allows you to claim refunds directly from your phone.
• Enhanced multilingual support so international visitors can navigate the process comfortably.

Final Tips & Important Notes

A few things to keep in mind:

• The VAT refund only applies to goods not consumed or used in the UAE, like souvenirs or clothing.
• Services such as hotel stays, car rentals, or dining are not eligible.
• Make sure to request your refund before leaving the UAE.
• Keep your boarding pass and receipts handy until the process is complete.

Conclusion

The UAE is making VAT refunds simpler and faster for tourists. By shopping at participating stores, keeping your documents, and visiting kiosks at airports or seaports, you can reclaim VAT on your eligible purchases and have more savings on your trip. So next time you're shopping in Dubai, Abu Dhabi, or other emirates, keep these tips in mind you might be surprised how much you can get back!