Tourist Tax Refund Scheme Registration

The Federal Tax Authority (FTA) on Saturday announced tourists to claim their VAT refunds when exiting the country. The Authority said the tourist needs to have purchased goods from retailers registered in the system which will go live soon.

“Upon leaving the country, the tourists will be able to reclaim taxes paid on their purchases in a fully electronic system. without any human involvement. The tourists shall submit the required documents and obtain a refund via credit card or in cash.

“Designated spaces will be provided where tourists can easily reclaim taxes. The digital system determines the taxes that are eligible for a refund and then reimburse tourists,” he added.

Meanwhile, the FTA said that the retailers who meet the requirements set by the FTA are free to register in the system if they choose to. And if a tourist decides to make a purchase with the intention of applying for a refund of the tax from a supplier registered for tax refund system, then the supplier must provide them with the necessary documents to do so, most notably a tax invoice that meets all legal requirements. The tourist then submits the claim with the system operator directly and obtains the refund from the operator where sufficient evidential documentation has been provided.

Conditions for tax refund

  • Goods in question need to have been supplied to the tourist within UAE
  • Tourist must have the explicit intention to leave UAE in 90 days from the date of supply, along with the purchased supplies
  • Goods in question must be exported out of the UAE by the tourist within three months from the date of supply
  • Tourist needs to have purchased goods from a retailer registered in the system
  • Purchase process must be carried out – and the goods exported – according to the requirements determined by a decision of the FTA
  • Goods in question must not be exempted from refund

How RAS can help:

We are assisting our customer in registering with FTA for this refund scheme. Our expert are providing all services and completing required formalities for registration.