Imposing value-added tax (VAT) at a standard rate of 5% by the UAE government was a landmark decision to diversify the country’s economy away from oil.
Moreover, tourists visiting emirates are eligible for claiming back 85 percent of applied VAT on goods purchased by them. More than 4,500 companies registered for this scheme during the initial stage which has now reached up to a mark of 300,000+ till now!
- The refund scheme provides a benefit of claiming a tax refund within 90 days of purchase which can be up to Dh 10,000 in cash while no-limits are there on credit card refunds.
- It’s the highest cash refund on taxation provided by any of the remaining countries across the globe till now.
- A tourist of 18 years & above, having intended to leave UAE within 3 months of purchasing goods is eligible for these refunds.
- But tourists will only get refunds if purchased goods are from companies registered under this scheme.
- Goods like motor vehicles, boats or aircraft do not fall under this scheme. Also, goods fully or partly consumed while stay in UAE is not eligible for refunds.
- Tourists need to provide a valid passport for proving their non-citizenship in participating stores.
- Once the store will log their provided information in an online system, they will be issued a tax-free tag on the purchase receipts with an instant created digital form.
- These free tags will be charged Dh 4.50 charges for each tax-free tag presented at the point of refund.
- The tax refund can be claimed only at the point of exit; Dubai, Abu Dhabi and Sharjah Airports in current time.
- The minimum spends of Dh 250 for goods to be eligible for the scheme.
- The remaining 15 percent of the transaction is paid as commission to the tax refund agency, Planet which currently operates in 58 countries across the world.
Are you looking for reliable vat consultants in Dubai? Look no further!
We have been providers of Accounts and Tax related services for nearly 15 years. Having offices in major locales of UK, we’ve successfully served a diverse range of business ventures; Start-Ups, Sole Traders, Limited Companies and Landlords.