Does the TAX FREE system work in the United Arab Emirates?

Yes, like in many other countries in the United Arab Emirates, the TAX Refund (TAX Free) system works - VAT refunds for goods purchased by tourists in the country.

A tourist who bought goods in UAE stores can claim a VAT refund within 90 days after making a purchase. At the same time, the maximum amount of a one-time cash return cannot exceed 7 thousand UAE dirhams (US $ 1.900). This amount is indicated in a special decree issued by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Minister of Finance and Chairman of the Federal Tax Administration (FTA) on July 7, 2019.

IMPORTANT: When refunding a credit card tax, the upper threshold is not set.

A tourist (or another person who is not a resident of the UAE) applying for a VAT refund must be an adult, and must also leave the UAE within three months after making a purchase and at the same time take the goods with him.

The VAT refund rules do not apply to aircraft crew members; VAT on yachts, cars, motorcycles or airplanes cannot be refunded; moreover, VAT is not refunded if the goods have been partially or fully consumed (used) in the UAE.

The resolution of the Cabinet of Ministers of the UAE No. 41 of 2018 "On the introduction of tax refunds under the tourist scheme" and other related documents can be found on the website of the UAE e-government.

Exclusive System Operator TAX Refund in the UAE is an international company PLANETwhose emirate office is located in the Business Bay area.

What you need to know before buying:

Sales outlets registered in the system TAX Refund in the UAE, have special stickers on display cases and inside trading premises. Anyone who plans to request a refund of value added tax when crossing the UAE border must ask the seller to register a purchase (transaction) for VAT refund upon purchase. In this case, you must present a valid passport in which there is no visa for a resident of the UAE. The cost of issuing a ticket is 4.5 UAE dirhams (US $ 1.2) - this is a fixed fee that remains with the system operator. The transaction will not be registered if the purchase amount does not exceed 250 dirhams (US $ 69). In addition, it must be remembered that only 85% of the collected VAT is returned to the tourist.

Contrary to popular belief and information disseminated on the Internet, the whole procedure is completely digital and does not require filling out any forms or questionnaires:

  • The seller enters and saves all the necessary information about the purchase and the buyer into the Planet online system;
  • Then the seller puts the Tax Free stamp on the back of the check, which is stored by the buyer;

UAE VAT refund procedure:

VAT refunds are made at special racks or through electronic kiosks located at the terminals of the international airports of the emirates of Abu Dhabi, Dubai and Sharjah, at land and sea border crossing points.

  • The tourist must find the validation point (check) of the PLANET system. At airports, they are in the areas before registration and passing control.
  • After validation of the transaction, one of the return methods will be offered - in cash or by credit card.
  • The tourist may be subjected to additional verification, for example - present the purchased goods.

Watch the video: VAT in UAE has Changed my Life. TAX in Dubai (March 2024).