How to Claim VAT Refund in UAE for Tourists- Step by Step Guide

The UAE, known for its luxury shopping experiences and tax-free policies, introduced a Value Added Tax (VAT) of 5% in 2018. However, to keep attracting tourists, the UAE offers a VAT refund system that allows visitors to reclaim VAT on eligible purchases.

What is the VAT Refund System in the UAE for Tourists?

The VAT refund system in the UAE allows tourists to recover the 5% VAT they paid on eligible goods purchased during their visit. The refund scheme is designed to provide a hassle-free process for tourists, ensuring that their shopping experience in the UAE remains competitive on the global stage.

How to Claim VAT Refund in UAE for Tourists

Claiming a VAT refund in the UAE is a straightforward process if you follow the correct steps. Here’s a step-by-step guide:

1. Shop at Participating Outlets:

First and foremost, ensure that the store where you are shopping participates in the Tourist Refund Scheme. These retailers are authorized by the UAE’s Federal Tax Authority (FTA) to provide VAT refunds to tourists. Participating stores will display a sign that indicates they are part of the scheme.

2. Request a Tax Invoice:

When making a purchase at a participating store, request a tax invoice. This is a requirement to claim your VAT refund. The invoice should contain specific details, such as the total amount paid, the VAT amount, and the store’s tax registration number. Ensure that all information on the invoice is correct.

3. Validate Your Purchase at a Refund Kiosk:

Before you depart the UAE, visit a tax refund validation point located at airports, seaports, or border crossings. These kiosks allow tourists to validate their tax invoices and claim their refunds. You’ll need to show your tax invoices, passport, and boarding pass to verify that you are eligible for the VAT refund.

4. Present Your Goods for Inspection:

In some cases, you may be asked to present the goods you purchased to verify that they are eligible for the refund. Make sure the items are unused and ready for inspection.

5. Receive Your VAT Refund:

Once your invoices are validated, you can choose how to receive your VAT refund. You can opt for a cash refund (up to a certain limit) or have the refund credited to your credit or debit card. A small processing fee will be deducted from the total refund amount.

Do We Get VAT Refunds at Dubai Airport?

Yes, you can claim your VAT refund at Dubai International Airport as well as other major airports in the UAE. The process for claiming a VAT refund at the airport is simple and quick.

 Steps to Claim a VAT Refund at Dubai Airport:

1. Head to the VAT Refund Desk: After completing your shopping, proceed to the VAT refund desk at Dubai International Airport. This desk is usually located near check-in or after immigration in the departure area.

2. Present Your Documents: Show the refund desk agents your tax invoices, passport, and boarding pass. If required, present the purchased goods for inspection.

3. Validate and Choose Refund Method: Once your documents are validated, you can receive your refund in cash (up to a certain limit) or have it transferred to your credit or debit card.

Can We Get a VAT Refund in Dubai Mall?

While you cannot directly receive your VAT refund at Dubai Mall, you can still request and validate tax invoices for purchases made there. Tourists shopping in Dubai Mall should ensure they purchase from participating outlets in the Tourist Refund Scheme.

After completing your shopping, bring the tax invoices to a tax refund validation kiosk before leaving the country, usually at the airport. Although Dubai Mall doesn’t offer VAT refunds on the spot, the process for obtaining and validating the tax invoices is the same.

What Items are Eligible for VAT Refunds?

Not all items are eligible for VAT refunds. Understanding what qualifies for a refund can help you avoid confusion when you make a claim.

Eligible Items for VAT Refund:

1. Goods Purchased from Participating Retailers:

To qualify for a VAT refund, the items must have been purchased from a retailer participating in the Tourist Refund Scheme. These retailers will provide tax invoices and assist you in the refund process.

2. Goods Taken Out of the UAE:

The purchased items must be exported out of the UAE within 90 days from the date of purchase. This means you must carry the goods with you when you leave the country, and they must be unused.

3. Physical Goods Only:

The VAT refund applies to physical goods. Services, such as hotel stays, dining, and entertainment, are not eligible for a VAT refund.

4. Minimum Purchase Value:

The minimum amount per tax invoice required to claim a refund is AED 250.

Items Not Eligible for VAT Refund:

• Services such as dining, entertainment, hotel bookings, or car rentals.
• Goods that are consumed within the UAE, such as food and beverages.
• Items not exported from the UAE within 90 days.
• Certain restricted goods, including automobiles, yachts, and goods purchased for business purposes.

How Long Do VAT Refunds Take?

Once you’ve submitted your VAT refund request at a validation point, the time it takes to receive the refund depends on the method of refund chosen.

Refund Time for Different Methods:

1. Cash Refunds:

Cash refunds are processed immediately at the validation kiosks located at airports or border exits. If you choose to receive your refund in cash, you will receive it on the spot after validation.

2. Credit/Debit Card Refunds:

If you opt for a refund to your credit or debit card, it may take anywhere from 10 to 14 business days for the refund to appear in your account. The refund processing time can vary depending on the bank and the card provider.

3. Processing Fees:

A small processing fee is deducted from the total refund amount before disbursement. This fee covers the administrative costs of the refund process.

Important Tips for Claiming a VAT Refund in the UAE

To ensure a smooth and successful VAT refund experience, here are some important tips:

1. Keep Tax Invoices Safe:

Ensure you store your tax invoices in a secure place. You will need them to claim your VAT refund, and any missing or damaged invoices may result in delays or rejection of your refund request.

2. Don’t Use the Goods:

The goods you claim a VAT refund for should be unused and exported out of the UAE. Any item that shows signs of use may be disqualified from receiving a refund.

3. Allow Time at the Airport:

Arrive at the airport with sufficient time to process your VAT refund before your flight. The refund process at the airport can take some time, especially if there are queues or additional inspections.

4. Use Refund Validation Kiosks:

Utilize refund validation kiosks located in airports and other exit points to streamline the process. These kiosks are integrated with the UAE’s **Federal Tax Authority (FTA)** to process VAT refunds efficiently.

5. Double-Check Participating Retailers:

Not all stores in the UAE are part of the Tourist Refund Scheme. Always check if the retailer is registered in the program before making your purchase if you’re expecting to claim VAT back.

The UAE’s VAT refund system for tourists is a simple and beneficial process, allowing visitors to reclaim the 5% VAT on eligible goods purchased during their stay. By understanding how to claim the refund, shopping at participating retailers, and following the validation process at airports or other exit points, tourists can enjoy significant savings on their purchases.

Whether you’re departing from Dubai International Airport, shopping at Dubai Mall, or purchasing items at any other location in the UAE, it’s crucial to ensure that the purchases meet the eligibility criteria for a VAT refund. Remember to keep your invoices, follow the necessary steps for validation, and choose the refund method that best suits your needs.