The United Arab Emirates has unveiled a groundbreaking initiative allowing tourists to claim Value-Added Tax (VAT) refunds on e-commerce purchases made during their stay. This innovative move, launched by the Federal Tax Authority (FTA) in partnership with Planet, the authorized VAT refund operator, solidifies the UAE’s position as a global hub for tourism and e-commerce.
Streamlined Refund Process for Online Shoppers
Under this system, tourists can directly apply for VAT refunds on purchases from registered e-commerce platforms by submitting travel document details at the time of purchase. Once their identity is verified during delivery or online order fulfillment, the refund process is seamlessly completed. This approach eliminates the need for paperwork, reflecting the UAE’s emphasis on digital transformation.
“The VAT refund process has been designed to ensure simplicity, speed, and efficiency from the moment of purchase to the completion of the refund when the tourist departs,” said Khalid Al Bustani, Director-General of the FTA.
A World-First in Digital Tax Systems
This initiative builds on the UAE’s success in launching fully digital VAT refund systems for tourists, replacing outdated, paper-based processes. Tourists can now scan their passports, complete purchases, and receive digital invoices, all through an automated platform. This system has received widespread acclaim for its convenience and efficiency, further enhancing the UAE’s appeal as a tourist destination.
The FTA emphasized that all purchases—whether from physical stores or online platforms registered with the authority—are eligible for VAT refunds. Tourists spending a minimum of AED 250 can apply for refunds before departing the country.
Boosting Tourism and Economic Diversification
The VAT refund for online purchases is part of the UAE’s broader strategy to diversify its economy and reduce reliance on oil revenues. Since implementing VAT in January 2018, the UAE has consistently refined its tax policies to align with global best practices.
Additionally, the country’s push towards innovation includes incentives such as corporate tax credits for research and development, further reinforcing its position as a leader in digital and economic transformation.
Enhancing the UAE’s Global Standing
The VAT refund system highlights the UAE’s commitment to setting global benchmarks in tourism, technology, and innovation. This move aligns with the country’s vision to become a leading global destination for travelers, offering a safe, welcoming environment with world-class facilities.
The seamless integration of e-commerce and tax refunds is expected to drive tourist spending, boost the local economy, and strengthen the UAE’s reputation as a pioneer in adopting forward-thinking solutions.
Tourists can now look forward to an effortless shopping experience, enjoying the benefits of VAT refunds while exploring the UAE’s diverse attractions.
