Taxes. VAT refund for tourists

The United Arab Emirates is a popular travel destination. Warm sea, sunny weather, sights of the East attract tourists from all over the world.

Also, there are many comfortable malls in the UAE, which makes the country an ideal place for shopping. Tourists buy branded clothes and accessories, appliances, watches, jewelry and even fur coats! And while the prices are pleasant enough thanks to the low taxes, it is good for tourists to know that there are additional savings to be made on such purchases.

From November 2018, eligible UAE tourists can claim a refund of value added tax (VAT) paid on their purchases during their stay in the UAE. VAT in the UAE in 2022 is 5%.

In this case, certain conditions must be met. Let's take a look, in detail, what conditions must be met in order to receive a VAT refund on purchases in the UAE.

Conditions for VAT refund on purchases in the UAE

• The applicant must be a tourist, 18 years of age or older and not be a UAE resident.
• Goods are exported outside the UAE within 90 days from the date of purchase.
• Goods can be physically presented for inspection at the time of departure from the UAE
• Purchases should be made at authorized retail outlets that are part of the Planet global system. Green Tax- Free Planet stickers can be seen at the entrance to the respective stores.
• Minimum purchase amount: 250 dirhams (approximately 68 US dollars).

The procedure of a purchase for a subsequent VAT refund is as follows:

• The buyer informs the seller about the planned VAT refund and presents the passport that was used to enter the UAE.
• The seller registers the purchase in the Planet electronic system and sticks a special tag (Tax Free tag) on ​​the back of the check that is issued to the buyer. The tag is valid for 90 days.
• When leaving the UAE, you will need to have the following documents to complete the purchase procedure: passport, check with a Tax Free tag, boarding pass.
• Purchased goods will need to be shown to the Tax Free staff, who confirm their export.

How much VAT refund will be provided to the buyer?

• Tourists are entitled to receive 85% of the total VAT paid. The remaining 15% is charged by Planet as an administration fee.
• If the VAT refund is claimed in cash, then the amount of the payment is limited to 10,000 dirhams (approximately 2,714 US dollars). When returning to the card, the limit is not set.
• VAT is not refundable on selected purchases, including cars, aircraft and boats.

Where can I get a VAT refund?

• At the international airports of Dubai, Abu Dhabi and Sharjah at the relevant Tax-Free counters.
• In self-service kiosks, which can be found both at airports and major malls in the UAE and hotels. The tourist will need to scan his boarding pass confirming that he will leave the territory of the UAE within the next 24 hours, as well as the original passport, and follow the instructions of the electronic system.

Enjoy your shopping!