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UAE launches VAT refund for tourists shopping online

In a statement, the Federal Tax Authority explained that this initiative is part of its ongoing efforts to adopt proactive, innovative solutions

Tourists in the UAE can soon recover value-added tax (VAT) on e-commerce purchases made during their stay in the country, authorities announced on Monday.

This new e-commerce VAT refund system allows platforms and e-stores registered with the Federal Tax Authority (FTA) to offer VAT refunds to tourists on their online purchases while they are in the UAE.

The Authority’s new tax refund system simplifies the process for tourists, from purchase to refund. Tourists in the UAE can submit VAT refund requests directly through registered e-commerce platforms, providing travel document details and personal information to verify their eligibility at the time of purchase. Once the tourist's identity is confirmed, the refund process is completed when they leave the country, making the entire experience hassle-free.

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This initiative builds on the success of the FTA’s previous efforts, including the digital tax refund system launched over two years ago. That system replaced paper-based processes with fully digital mechanisms, allowing tourists to scan their passports, complete purchases, and receive digital invoices—all of which make the refund process smoother and faster.

In a statement today, the FTA explained that this initiative, launched in collaboration with Planet, the authorised VAT refund operator for tourists, is part of its ongoing efforts to adopt proactive, innovative solutions.

The move aligns with the UAE’s goal of becoming the best government in the world, enhancing its competitiveness across various sectors, including tourism and e-commerce. The new system is expected to boost the country's digital and innovation performance on a global scale, further cementing its leadership in these areas.

Khalid Ali Al Bustani, Director-General of the FTA, emphasised that this world-first system will further enhance the UAE’s reputation as a leading global tourist destination, known for its safe environment, hospitality, and world-class attractions. The system, which has received praise from tourists for its ease and speed, allows them to quickly and efficiently recover VAT on both traditional and online purchases made during their stay.

The Federal Tax Authority also noted that whether the tourists made the purchase from traditional stores or from electronic platforms, they will be able to get VAT refunds as long as the stores are registered with the Authority.

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