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τίτλος : The UAE to initiate VAT refund system from November to tourists
Σύνδεσμος : The UAE to initiate VAT refund system from November to tourists

The UAE to initiate VAT refund system from November to tourists

The UAE aims to put an up-to-date system in place for VAT refund to millions of tourists from November. The VAT refund system will be initially available at Abu Dhabi, Dubai and Sharjah airports. By the end of the year, it will be extended to 12 exit points, including the land borders and ports.

 

Federal Tax Authority (FTA) and Tourist Refund Scheme operator Planet have issued guidelines setting a minimum limit of Dh250 to claim VAT refund.

 

All non-UAE residents above 18 years old will be eligible for tax-free shopping. According to Planet’s website, tourists will be able to validate their tax-free forms at Dubai International, Abu Dhabi and Sharjah airports until December 16. After this, the system will be in place at nine more locations – Al Maktoum airport, Abu Dhabi Port Zayed, Al Ain Airport, Al Ain land border, Fujairah Airport, Ras Al Khaimah Airport, Al Ghuwaifat land border, Hatta land border and Dubai Mina Rashid Harbour.

 

Tourists could be asked to present their goods to confirm that they are unused. Only the owner of the passport under which the tax free forms are registered will be entitled to collect the refund.

 

Anurag Chaturvedi, managing partner, Chartered House said that tourists will receive 85 per cent of the total VAT amount after deduction of an administration fee of Dh4.80 per tax-free form.

 

He said that if a tourist buys electronic goods worth Dh210 from a store and spends another Dh315 on buying souvenirs from another store, he can claim tax refund of Dh15 on purchases of Dh315 and not against electronics purchase of Dh210 as it is below the minimum spend limit set by the authority.

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Tags: UAE, VAT refund system

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