UAE Launches Electronic VAT Refund System for Tourists
The United Arab Emirates has introduced a system for VAT refunds for tourists who make purchases in online stores during their stay in the country.
The system is fully electronic, operating through a digital platform where tourists can scan their passports, make purchases, and automatically upload receipts (which can then be used to claim a VAT refund).
Notably, the system allows VAT refunds for all purchases, including those made online.
How it works:
The VAT refund process takes place after identity verification, either during delivery or upon completing the online order. A tourist who made a purchase in the UAE can apply for a VAT refund within 90 days of the purchase.
The maximum amount for a single cash refund is AED 7,000, while there is no upper limit for refunds processed to a card.
A tourist (or simply a non-resident of the UAE) must be of legal age and leave the UAE within three months of the purchase, taking the goods with them.
The VAT refund rules do not apply to aircraft crew members and do not cover VAT on yachts, cars, motorcycles, or airplanes. Additionally, VAT cannot be refunded if the goods were partially or fully consumed (used) within the UAE.
