With the introduction of Value Added Tax – VAT in the UAE, among all other schemes Tax Refund Scheme for Tourists has been the most awaited one. UAE has been a destination for millions of tourists especially Dubai, which is one of the Emirates of the UAE well known for its Tourist Attraction, Business Hubs, Luxury Shopping and its ultramodern architecture.
When will VAT refund scheme for tourists be applicable in the UAE?
The Federal Tax Authority – FTA has declared that Tax Refund Scheme for tourists will be initiated from November 2018. In this scheme, tourists will be able to avail for the VAT refund if they shop from retailers who are registered for Tax Refund Scheme under tax refund scheme for tourists.
When can retailers register for VAT Refund Scheme for tourists?
Retailers registered for VAT under FTA can start registering for Tax Refund Scheme for tourists from 10th September 2018. Briefing from the FTA related to the above will be held in Abu Dhabi on September 11th, 2018 and subsequently in Dubai.
What are the conditions to avail VAT Refund Scheme for Tourist?
- Goods should be bought by the tourist in the UAE.
- Tourist visiting the UAE must exit UAE within 90 days from the date of shopping along with the items bought.
- In order to get the VAT Refund, tourists should be sure only to buy from registered businesses for tourist refund scheme in the UAE. FTA will lay down the procedures to be followed to avail VAT refund to the tourists.
Where can tourists avail refund of the VAT they paid for their shopping?
The tourist can refund the tax they paid for their shopping only from the outlets and point of sales which are registered under the Tax Refund Scheme for tourists.
There will be designated places where the tourists will be able to avail their VAT refund scheme through an electronic system. A digital machine will be able to determine the taxes that are eligible for refund and then the tourists shall be paid accordingly.
What are the steps to avail Tourist Refund Scheme?
Step No. 1 – To get the Tax-free tag
Once you are finished with your shopping, a “tax-free tag” will be attached to your payment receipt. This “tax free tag” is very important as it will help you further to avail Tourist Refund Scheme with a minimum purchase of AED 250/-. This “tax free tag” is valid for Tourist Refund Scheme for a period of 90 days from the date of purchase. Once your “tax free tag” is validated you will receive 85% of the VAT with less AED 4.80/- deducted for admin fee.
Step No. 2 – Validation
It is important to note that validation is mandatory in order to avail Tourist Refund Scheme. For this purpose, you will be required to provide your passport / boarding pass and additional checks will be carried out to ensure everything is carried out in the right way. The validation can be done in 3 major airports of UAE until 16th December 2018 which is Dubai International Airport, Abu Dhabi and Sharjah airport. Later, validation points for Tourist Refund Scheme will be available in 9 other locations in different emirates.
Step No. 3 – Methods of refund
There are two types of refund in which you can avail Tourist Refund Scheme, i.e., by cash or credit. There will be assistance provided by planet tax free staff in order to get your refunds availed by Tourist Refund Scheme. No one apart from the owner can avail the refund.
Nam Accountants houses a wide range of TAX Services for all businesses in the UAE . The Tax Team in Nam Accountants engages professionals with relevant experience in Taxation hailing from different ends of the globe.
For more details visit: http://www.namaccountants.com/vat-consultant-in-dubai.html or contact : +971-558876440