Are you aware that you can take advantage of a VAT refund on purchases made in the United Arab Emirates? It’s true – you can legally enjoy tax-free shopping while visiting the UAE. Imagine making purchases of high-end luxury items and receiving money back for your expenses. It almost seems too good to be true, doesn’t it?
However, before we dive into the specifics of how and where to claim your refund, let’s first become familiar with the tourist tax refund system in the UAE. As of November 18th of 2018, eligible tourists are now able to request refunds on the Value Added Tax (VAT) they incurred on their purchases while in the UAE.
The VAT Refund Scheme for Tourists is an electronic system that is fully integrated with popular retail outlets registered with the VAT Refund Scheme. With Planet Payment as the exclusive operator, more than 13,800 stores are connected to the system. Moreover, the scheme is directly linked between 13 air, land, and maritime entry and exit ports across the UAE, making it easy for eligible shoppers to claim their tax refunds before departure.
So, if you’re planning a trip to the UAE and want to take advantage of tax-free shopping, rest assured that it’s a legitimate opportunity. Keep reading to find out how and where you can claim your VAT refund.
How Much Will I Get Back and who is Eligible??
Dubai and UAE’s VAT Refund Scheme enables you to receive 85% of the entire VAT paid, after deducting AED 4.80 for each Tax-Free Dubai Tag. The VAT Refund Process will automatically compute the overall sum. Overseas tourists (18 years and above) who purchased qualified goods from registered merchants are eligible to claim a VAT Refund in Dubai and across the UAE. You are considered an “overseas tourist” if you don’t have residency in any of the Implementing States. However, crew members on a flight, aircraft, or ship cannot avail of the VAT refunds.
How to claim their VAT refunds ?
To claim a VAT refund on purchases made in the UAE, tourists must meet specific requirements. First, they must buy goods from a retailer participating in the ‘Tax Refund for Tourists Scheme. Secondly, the purchased items cannot be excluded from the Refund Scheme of the Federal Tax Authority. Thirdly, tourists must have the intention to leave the UAE within 90 days of the date of supply and take the purchased items with them. Fourthly, they must export the goods out of the UAE within three months of the date of supply. Lastly, the purchase and export process must follow the procedures and requirements set by the Federal Tax Authority.
What Goods Are Eligible For VAT Refund In Dubai And The UAE?
All goods purchased from registered retailers are eligible for a VAT refund, except for the following categories: perishable items that have been consumed, either fully or partially, within the UAE; motor vehicles, boats, and aircraft; goods that are not accompanied by the overseas tourist when leaving the UAE; services; goods bought online; and items that have been used, either fully or partially, within the UAE and are not accompanied by their original packaging.
To ensure a tax-free refund in Dubai, don’t forget to validate your goods before leaving for your home country. The process is easy as Dubai offers VAT-free shopping. However, there are two things you need to keep in mind to enjoy this benefit.
Firstly, the process is entirely digital.
Secondly, you must spend at least 250 Dirhams.
In Dubai and the UAE, there are approximately 13,800 retailers registered with Planet that offer tax refunds. To request a VAT refund claim after making a purchase, simply present your valid passport or relevant travel document to the merchant. The retailer will then submit the claim on your behalf through Planet’s ‘Dubai Tax-Free System’, which generates a QR code sticker known as the ‘Dubai Tax-Free Tag’. Before leaving the store, ensure that the name on the tag matches the name on your passport to avoid any rejection of your tax refund in Dubai due to spelling errors.
Once you have made your purchases and received your Dubai Tax-Free Tag, it is necessary to validate your claim at a validation point prior to departing from the UAE. To do so, you must verify the goods you have just bought. Validation points are situated throughout the airports, seaports and land boarders.
When in the UAE, it is important to only validate your VAT refund when you are ready to depart. It is necessary to leave within 6 hours of validating your goods, otherwise your refund will be cancelled and you will need to start the process again. To begin the process, locate a validation point before checking your luggage and approaching the Immigration counters. Here, you can either scan the QR code or input your passport number and follow the instructions displayed on the screen. If you receive a green light, the validation process has been successful. However, if you receive a red light, seek assistance from staff members located near the validation point.
After completing the validation process, you have the option to select your desired VAT refund method. At present, there are four methods available for VAT refund, which include credit card, debit card, cash, and digital wallet methods.
Using The Self-Refund System
Tourists visiting the UAE can take advantage of Self-Service Kiosks to easily and reliably complete tax refund procedures. This service is available throughout the country, not just in Dubai. Alternatively, if online processes are more convenient, tourists can use the Self-Refund online system by scanning the QR code on their Tax-Free Tag with their smartphone’s QR code scanner. This will open the URL on their phone’s web browser, where they can enter their passport number and 16-digit card number with its expiration date to complete the VAT refund transaction.
Track My Tax Refund In Dubai
You can follow your tax return after making a claim for your most recent VAT-free purchases. You can easily stay updated on your status.
To access the specified URL, scan the Tax-Free Tag QR code. One of the following refund statuses will appear once you click the URL.
- Your Tax-Free Dubai Tag has been given. However you must authenticate your products before departing.
- Export Validated – The VAT refund has been started and you have finished the validation procedure. You can pick up your refund if you want to receive it in cash.
- Awaiting Items Validation – The staff at the validation checkpoint must examine your goods before issuing your VAT refund.
- Payment is Being Made – The VAT Refund is Being Made. It may take up to 9 days for this to appear in your bank account and 3 weeks for it to appear on your bank statements (depending on the card provider).
- Paid – Your refund has been processed and paid using the method you want to receive your VAT refund.
You might need to get help from customer services in some circumstances.
- Your tax-free Dubai refund has been revoked due to your refusal. There could be a lot of causes. If your request for a VAT refund has been denied, get in touch with customer services.
- Blocked – Additional information is needed for the VAT refund since the payment could not be executed. If your VAT refund is being held up, get in touch with customer care.
Nearly all points of entrance and exit of UAE have validation points. Additionally, keep an eye out for a green stand with the words “VAT Refund” lighting up on it.
Land Borders
Al Ghuwaifat — At the border with Saudi Arabia
Al Ain — At the border with Oman
Hatta — At the border with Oman
Airports
Abu Dhabi Airport – Common area between all terminals
Dubai Airport – Terminal 1, 2, 3, and 3 Business
Sharjah Airport
Al Maktoum Airport
Al Ain Airport
Ras Al Khaimah Airport
Sea Ports
Zayed — Abu Dhabi
Port Rashid – Dubai
Please be aware that the maximum refund amount per tourist is AED 7,000. If your purchase exceeds this amount, you will need to select an alternative VAT refund method. Despite sounding complex, obtaining a tax refund in Dubai is a smooth and straightforward process, with great efficiency and clarity.
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