The United Arab Emirates (UAE) has been offering a VAT refund scheme for tourists since November 18, 2018. This initiative allows eligible tourists to reclaim Value Added Tax (VAT) incurred on their purchases within the UAE, enhancing the country's appeal as a shopping and tourist destination.

Eligibility Criteria

To qualify for a VAT refund, tourists must meet the following conditions:

• Non-Resident Status: The individual must not be a resident of the UAE.

• Minimum Purchase Amount: There is a specified minimum spend requirement to be eligible for a refund.

• Approved Retailers: Purchases must be made from retailers participating in the VAT refund scheme.

Refund Process

1. Tax-Free Shopping: Tourists shop at stores displaying the "Tax-Free" logo.

2. Digital Tax-Free Tag: At the point of sale, the retailer attaches a digital tax-free tag to the sales receipt.

3. Validation at Exit Points: Before departure, tourists validate their purchases at designated kiosks in exit points such as airports, seaports, and border crossings.

4. Refund Collection: Upon successful validation, refunds can be collected in cash (up to a certain limit) or credited to a credit card.

Important Considerations

• Time Frame: Refunds must be claimed within 90 days of the purchase date.

• Goods Condition: Items must be unused and in their original packaging at the time of validation.

• Exclusions: Certain goods, such as motor vehicles, boats, and aircraft, are not eligible for VAT refunds.

Conclusion

The VAT refund scheme underscores the UAE's commitment to providing a seamless and rewarding experience for international visitors. Tourists are encouraged to familiarize themselves with the guidelines to fully benefit from the scheme during their stay.