According to The Federal Tax Authority (FTA), starting November 18, foreigners making purchases while on vacation in UAE would now be able to claim back the value-added tax (VAT) charged to their purchases subject to certain conditions. They can claim the refunds at Abu Dhabi, Dubai and Sharjah International Airports, subject to daily cash back limit amounting to AED10,000.

Who are eligible to get a refund?

Tourists visiting the UAE who are at least 18 years old and intend to exit the UAE along with the purchased goods within 90 days, with a minimum total value of tax-inclusive purchases amounting to Dh250.

Which transactions are eligible for a tax refund?

Purchases made from November 18, 2018, to certain stores (more than 4,500 outlets) which are approved by FTA will qualify for a refund.

Where can tourists claim the refund?

Tourists can get their cash refund at the airports in Abu Dhabi, Dubai and Sharjah subject to a maximum limit amounting to Dh10,000 daily.

Will the tourist be able to claim a refund on things like restaurant meals or taxis?

No, only eligible goods can receive a Tax-Free Tag for a refund.

What goods are eligible?

All taxable goods are eligible except for Goods that have been consumed, in full or in part, in the UAE; Goods that are not accompanied by the Overseas tourist at the time of leaving UAE; Motor vehicles, boats, and aircraft

How does the tourist know which shops offer Tax Free shopping?

Look for stores displaying the Planet Tax-Free and FTA logo, or ask in store.

Is the price indicated in the menu includes VAT?

The Menu Price should be inclusive of VAT. According to Article 38 of VAT Decree Law no.8 of 2017, the published or advertised price of any Taxable Supplies shall be inclusive of VAT.

Will, there be bad debt relief for VAT purposes?

A VAT-registered business will be able to reduce their output tax liability by the amount of VAT that relates to a bad debt which has been written off by the VAT registered business subject to certain conditions and limitations as stated in the legislation concerning the use of this relief.

Can businesses offset customs duty against VAT payments?

VAT shall be payable in addition to the customs duties paid by the importer of the goods and cannot be deducted. VAT shall be computed on the value that includes the customs duties.

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