Home BLOGHow to Get VAT Refund in UAE |...

January 19, 2025

How to Get VAT Refund in UAE | All You Need To Know

Last Updated: April 12, 2025

A Complete Guide for Tourists on Tax-Free Shopping

1. VAT Refund in UAE

The Federal Tax Authority (FTA) implemented a Value Added Tax (VAT) of 5% in January 2018 to boost the country’s economic framework and diversify revenue sources. To cater to tourists and encourage retail spending, the FTA launched a 100% digital tax-free shopping service in late 2018. This system allows visitors to reclaim VAT on eligible purchases, making shopping in the UAE even more rewarding.

The process is streamlined, ensuring tourists can enjoy a hassle-free experience while reclaiming a portion of their expenses. Whether you're buying luxury items, electronics, or high-end fashion, the VAT refund system offers significant savings, adding extra value to your UAE visit. Here's everything you need to know about VAT refunds to enhance your shopping experience.

Benefits of VAT Refund in the UAE

The VAT refund program not only encourages retail tourism but also enables travelers to save on purchases that meet eligibility criteria. High-value items such as jewelry, electronics, and designer goods are popular choices for VAT refunds. The program is designed to align with global standards, ensuring ease of use for tourists.

Overview of UAE’s VAT Refund System

Note: Live the luxury! Invest in 3 bedrooms apartments for sale in safa two.

Benefits of UAE’s VAT Refund Program

Digital Efficiency: A fully automated system ensures quick and error-free processing.
Global Standards: The program aligns with international tax refund practices, ensuring a familiar process for tourists.
Boost to Tourism: By making luxury shopping more affordable, the UAE enhances its appeal as a global shopping destination.

2. What is Tax-Free Shopping?

Tax-free shopping allows tourists to purchase taxable goods in the UAE and get a refund on the VAT paid, provided the goods are exported. Here’s how you can get VAT refund in UAE:

Definition

Tax-free shopping involves buying goods in the UAE that will be exported. Tourists can request a VAT refund on these purchases, subject to certain terms and conditions.

Eligibility Criteria

Tourists must validate their purchases at the point of exit.
Refunds can be claimed within one year from the date of export validation.

3. Operator of the VAT Refund System

The VAT refund system in the UAE is managed by Planet, the exclusive operator appointed by the FTA. Here’s what you need to know:

Introduction to Planet

Planet is responsible for executing the tax refund system for tourists in the UAE. They ensure that the process is smooth and efficient.

Store Registration

Most popular stores in the UAE are registered with the tax refund scheme. This means you can shop at these stores and be assured of getting your VAT refund when you leave the country.

4. How to Shop Tax-Free?

Shopping tax-free in the UAE is straightforward. Follow these steps to ensure you get your VAT refund in UAE:

Steps for Tax-Free Purchases

Request Tax-Free Purchase: At the store, ask for a tax-free purchase. Ensure your total expenditure is at least AED 250.
Present Travel Document: Show a valid travel document to be scanned.
Capture Tourist Information: The shop assistant will use the Planet system to capture your details.
Tax-Free Tag: A tax-free tag will be placed on the back of your sales receipt.
Digital Tax-Free Form: A digital form is created for your purchase.

Validation Process

Validate at Airport: You must validate your transaction at the airport within 90 days of purchase.
Required Documents: Present your tax invoices, passport, and credit card at the validation point.
Refund Methods: Choose between cash in UAE dirhams or a refund to your credit card.

This guide covers the essential steps and information you need to get VAT refund in UAE. Stay tuned for more sections that will further simplify your tax-free shopping experience. If you have any questions or need more details, feel free to ask!

REGISTER YOUR INTEREST

5. Conditions for Tourists to Claim VAT Refunds

To get VAT refund in UAE, tourists must meet specific conditions. Here’s a detailed look at what you need to know:

Items Not Eligible for Refunds

Consumed Goods: Any item that has been fully or partially consumed in the UAE.
Non-Possession Goods: Goods not in the tourist’s possession when leaving the country.

Additional Conditions

Age Requirement: Tourists must be at least 18 years old.
Participating Retailers: Goods must be purchased from retailers registered under the 'Tax Refund for Tourists’ scheme.
Eligible Goods: Only goods not excluded from the refund scheme by the FTA.
Physical Presentation: Tourists must present the tax invoice, tax-free tags, and relevant goods at the point of exit.

Conditions for VAT Refund Eligibility

6. How to Collect VAT Refund?

Collecting your VAT refund in UAE is a straightforward process. Here’s how you can do it:

Process for Collecting Refunds

Submit Required Documents: At the departure port, submit your tax invoices, passport, and credit card.
Choose Refund Method: Select between cash in UAE dirhams or a refund to your credit card.
Use eService: Utilize the FTA’s eService in cooperation with Planet for a seamless refund process.

Required Documents

Tax Invoices: Original invoices from registered outlets.
Passport Copy: A copy of your passport.
Credit Card Copy: A copy of your credit card.

Refund Methods

Cash Refund: Maximum refund amount in cash is AED 10,000 per tourist.
Credit Card Refund: Refunds can be processed to Visa, MasterCard, American Express, and Union Pay cards.

Tax Refund Methods and Limits

Note: Your luxurious home awaits! Invest in safa two 3 bedrooms apartments for sale.

7. Additional Information

Here’s some extra information to help you get VAT refund in UAE:

eService by FTA and Planet

The FTA, in cooperation with Planet, offers an eService for tourists to get their VAT refunded upon departure from the UAE. This service ensures a smooth and efficient refund process.

Deduction Fee and VAT Refund Percentage

Deduction Fee: A fee of AED 4.80 per tax-free tag is deducted.
Refund Percentage: Tourists receive 85% of the total VAT amount paid.

Important Notes

Validation Period: Your tax-free tag must be validated within 90 days of purchase.
Inspection: Goods may be inspected by Planet staff at the validation point.

How to Maximize Your VAT Refund

Shop Smart: Focus on high-ticket items such as luxury goods and electronics.
Save Receipts: Ensure all eligible purchases are accompanied by tax invoices and tax-free tags.
Validate Early: Arrive at the airport or departure terminal with sufficient time to complete the validation process.
Use Registered Retailers: Confirm that the store is part of the UAE’s tax refund system before making a purchase.

8. Enjoy Your Tax-Free Shopping Experience!

Tax-free shopping in the UAE offers a fantastic opportunity to save money on your purchases. By following the steps outlined in this guide, you can easily get VAT refund in UAE and make the most of your shopping experience. Remember to validate your purchases and keep all necessary documents handy. Happy shopping!

CALL US NOW

FAQs on How to Claim VAT Refund in UAE for Tourists

What is the time frame for validating a VAT refund?

Tourists must validate their tax-free purchases within 90 days from the date of the tax invoice. Validation happens at the time of departure at designated refund points, including airports, ports, or land borders. Ensure you have your passport, tax invoices, and tax-free tags ready. It’s important to physically present the goods for inspection if requested by VAT refund staff. Validation delays or missing documents may result in forfeiting the refund.

How do I ensure my purchases are eligible for VAT refund?

To qualify for a VAT refund, ensure the retailer is registered with the UAE’s tax refund scheme. Check for the "Tax-Free" logo or ask the store directly. Additionally, only goods intended for export are eligible; services like hotel stays and meals are excluded. High-ticket items such as jewelry, electronics, and fashion goods are usually eligible.Eligible Purchases Include:

Electronics like laptops and phones
Luxury watches and jewelry
Designer apparel and accessories

What documents are essential for VAT refunds?

Tourists must present:

A valid passport or travel document
Original tax invoices from purchases
Tax-free tags attached to receipts

Ensure all documents are kept in good condition to avoid processing delays. A validated refund form provided by the retailer is also necessary. Having a photo of your passport on your phone can sometimes work, but it’s safer to carry the original.

Documents Needed for VAT Refunds

What percentage of VAT is refundable?

Tourists can reclaim up to 85% of the VAT paid on eligible purchases. A small processing fee of AED 4.80 is deducted for each tax-free tag attached to a receipt. For instance, if the VAT paid is AED 100, tourists will receive AED 85 after the deduction. By focusing on high-value goods and reducing the number of tags, travelers can maximize their refund amount.

Example of Refund Calculation

Can VAT be refunded on all items?

No, VAT refunds apply only to goods exported out of the UAE. Items like jewelry, electronics, and fashion are typically eligible, while services, consumables, and low-cost items are excluded. Ensure you focus on high-value goods and check the eligibility with retailers before purchase.

Items Eligible for VAT Refunds

Watches and luxury accessories
Designer clothing and footwear
High-end gadgets

Non-Eligible Items

Hotel stays and meals
Consumables like sunscreen
Services such as transportation

Where can I claim a VAT refund?

VAT refunds can be processed at airports, ports, or land borders. Look for designated VAT refund counters or terminals. These refund points are marked clearly and located in public areas. It’s advisable to arrive early, as the validation process may take time during busy travel periods. Refunds can be credited directly to your card or given in cash.

Note: Want to invest in Dubai? Make a smart choice by investing in 2 bedrooms apartments for sale in aykon city tower.

How much is the VAT rate in the UAE?

The UAE imposes a standard VAT rate of 5% on most goods and services. However, certain categories, such as exports, qualify for a zero-rated VAT, meaning no tax is applied. While 5% may seem small, it adds up on luxury items, making the refund system highly beneficial for tourists purchasing high-value goods.

Which items are not eligible for VAT refunds?

Certain goods and services cannot qualify for VAT refunds. These include hotel stays, dining, transportation services, and low-value consumables. Additionally, goods purchased for consumption in the UAE, such as groceries or skincare items, are excluded.

Non-Eligible Purchases For UAE VAT Refund

Note: Read our exclusive blog on UAE Petrol Prices Updated.

What is the fee deducted for VAT refunds?

The fee deducted is AED 4.80 per tax-free tag, regardless of the value of the purchase. Tourists can minimize these fees by consolidating purchases under fewer receipts or tags. This ensures higher refunds with fewer deductions.

How do I process VAT refunds electronically?

Log in to the Federal Tax Authority (FTA) e-Services Portal to access the VAT refund section. Select the VAT311 refund form and complete the required fields, including your tax identification and invoice details. Upload scanned copies of all necessary documents. The system will notify you once the refund is approved.

How can tourists ensure a smooth refund process?

To ensure a hassle-free refund process, follow these steps:

Purchase goods from VAT-registered retailers.
Keep all receipts and tax-free tags organized.
Confirm eligibility with store staff before purchase.
Arrive at the departure terminal early for validation.
Verify that your documents are complete and undamaged.

What if I forget to validate my purchases?

If you fail to validate your goods and invoices at departure, your VAT refund will be void. Tourists must validate their purchases within 90 days of the tax invoice date, making it essential to prioritize the process during departure preparations.

How do I claim a VAT refund at the airport?

Visit the VAT refund counter or terminal in the departure area. Present your passport, invoices, tax-free tags, and goods for inspection. Once verified, the refund will be processed, either as cash or directly credited to your card.

How much VAT can tourists reclaim in the UAE?

Tourists can reclaim 85% of the VAT paid on eligible purchases, with a processing fee of AED 4.80 per tax-free tag deducted. This means you save significantly on high-value items. For example, on an AED 10,000 purchase, the VAT is AED 500, and the refund after fees is AED 425.

Example UAE VAT Refund Breakdown

Note: Read our exclusive blog on Rules for Flying Drones in UAE

Can VAT refunds be processed at land borders?

Yes, VAT refunds are available at land border terminals. Ensure you carry all required documents and visit the designated refund point for validation. Processing may take longer during peak travel times, so plan accordingly.

Disclaimer: The information provided in this article is intended for general informational purposes only. The details mentioned are based on the best available information at the time of publication and are subject to change without notice by the respective authorities. Readers are encouraged to consult the relevant offices directly for the most accurate and updated information.

Thinking about investing in Dubai?

Thinking about investing in Dubai? DAMAC Properties is the name to know. As a frontrunner in luxury real estate, DAMAC has set the standard with stunning homes and business spaces that capture the essence of Dubai living. From the serene surroundings of DAMAC Lagoons to the lively communities of DAMAC Hills and DAMAC Hills 2, each development is crafted to offer an unmatched lifestyle. Attention to detail and a commitment to quality are at the heart of every project, ensuring a seamless blend of luxury, innovation, and lasting value. For those ready to make a smart investment in Dubai, DAMAC Properties presents the ideal opportunity to step into a world of elegance and excellence.

DAMAC’s commitment to quality is evident in every aspect of its developments. From high-end finishes and innovative designs to sustainable features that enhance the environment, each property is built with precision and care. These developments not only represent luxury but also offer excellent investment potential, making them an ideal choice for those seeking to grow their portfolio in Dubai's thriving real estate market.