The 5 per cent VAT return has been eligible on in-store purchases since November 2018… 

Credit cards at the ready, visitors: the UAE is implementing VAT refunds for online purchases as it continues to move towards digitalisation.

Announced by the UAE’s Ministry of Finance’s Federal Tax Authority (FTA) and reported by The National on Monday December 16, the 5 per cent VAT refund is now offered on e-commerce purchases as well as in-store buys.

How it works

As per the FTA, tourists can request a VAT refund through dedicated e-commerce platforms. They will need to submit their travel documents at the time of purchase before their orders are shipped. Once a tourist’s identity is verified during delivery or online order fulfilment, the VAT refund registration is complete. The FTA have developed the system alongside Planet, the authorised operator of the VAT refund system for tourists in the UAE.

Tourists can also verify their invoices via the shoppers’ portal, providing a seamless shopping experience with fast and fully digital VAT refund procedures.

The FTA said that this would not only strengthen Dubai as a tourism hub, and work towards its digitalisation goal, but it’s also fully compliant with the UAE’s tax legislation rules.

In January 2018 a 5 per cent value added tax was introduced on most goods and services in the UAE. And since the November of that year, tourists who spend at least Dhs250 on physical purchases have been able to claim that VAT back at dedicated centres and kiosks across the country.

The VAT refund system for physical purchases has continually improved since VAT was introduced in 2018 to make claiming back easier for tourists. In June 2019, self-service kiosks were launched by Planet, to create a more simple way for tourists to submit their claims before leaving the country. It was further made easier in 2022 when a paperless tax refund system came into play, meaning you no longer need to keep receipts.