UAE Launches World’s First Online VAT Refund System for Tourists
Emirates pioneers e-commerce VAT refunds to boost tourism and enhance shopping convenience
UAE introduces world’s first online VAT refund for tourist shopping
In a bid to boost tourism, the United Arab Emirates (UAE) announced on Monday, December 16, that it will introduce a new value-added tax (VAT) refund system for e-commerce purchases made by tourists while they are in the country. It is believed to be the first of its kind in the world.
The new system, in collaboration with Planet, an approved operator of the VAT refund system for tourists, is in line with the FTA’s (Federal Tax Authority) plans to adopt ‘efficiency solutions’.
The new system allows tourists to claim VAT refunds directly from registered e-commerce sites by submitting their travel document details before their orders are dispatched. Registration for VAT refunds is completed once the tourist’s identity is verified upon delivery or when fulfilling an online order.
In January 2018, the UAE introduced a 5 percent VAT rate, which aims to diversify the economy and reduce its dependence on oil.
Since November 18, 2018, the UAE has implemented a VAT refund scheme for tourists, enabling them to claim a refund for VAT incurred on local purchases.
In September 2022, the UAE introduced a paperless tax refund system for tourists, eliminating the need for receipts.
