Dubai, a global tourism hub, offers a Value Added Tax (VAT) refund scheme for tourists, allowing visitors to reclaim VAT paid on eligible purchases made during their stay. This guide explains how the VAT refund process works for visiting visa holders in Dubai.
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What is VAT and the Tourist Refund Scheme?
VAT is a consumption tax levied on most goods and services in the UAE at a standard rate of 5%. The Tourist VAT Refund Scheme allows eligible tourists to reclaim the VAT paid on purchases they make during their visit, provided they meet certain conditions.
Eligibility for VAT Refunds:
To be eligible for a VAT refund as a tourist in Dubai, you must meet the following criteria:
- Not a Resident of the UAE: You must not be a resident of the UAE.
- Visiting Visa Holder: You must be in the UAE on a visiting visa.
- Departure within 90 Days: You must be departing the UAE within 90 days of the date of purchase.
- Purchases from Participating Retailers: You must have made purchases from retailers participating in the Tourist VAT Refund Scheme. These retailers will display a “Tax-Free” sticker.
- Minimum Spend: There is a minimum spend per invoice (currently AED 250).
- Goods Must Be Exported: The goods purchased must be exported from the UAE within 90 days of the purchase date.
How to Claim a VAT Refund:
The VAT refund process is facilitated through a digital system operated by Planet Payment. Here’s a step-by-step guide:
- Shop at Participating Retailers: When making a purchase at a participating retailer, request a Tax-Free form along with your purchase receipt.
- Present Your Passport: Provide your passport to the retailer so they can electronically record your purchase on the Planet Payment system.
- Validate Your Purchases at Departure: Before departing the UAE, visit a Planet Payment validation point at the airport, seaport, or land border crossing.
- Present Your Documents: Present your passport, Tax-Free forms, and purchase receipts to the validation point.
- Choose Your Refund Method: You can choose to receive your refund via:
- Credit/debit card (refund will be processed to the card you provide).
- Cash (available at designated refund points).
- Bank transfer (may take longer to process).
Important Points to Remember:
- Keep Your Documents: It is crucial to retain your original Tax-Free forms and purchase receipts, as these are required for validation.
- Validation Points: Ensure you validate your purchases at a Planet Payment validation point before leaving the UAE. You cannot claim the refund after you have departed.
- Time Limit: You must export the goods and validate your purchases within 90 days of the purchase date.
- Refund Amount: The refund amount will be the VAT paid on the eligible goods, minus a small administration fee charged by Planet Payment.
- Check for Updates: Regulations and procedures can change. It is advisable to check the official Planet Payment website or the Federal Tax Authority (FTA) website for the most up-to-date information.
Where to Find Validation Points:
Planet Payment validation points are located at:
- Major airports in the UAE, include Dubai International Airport (DXB) and Al Maktoum International Airport (DWC).
- Seaports.
- Land border crossings.
How long do VAT refunds take :
The processing time for VAT refunds in Dubai can vary depending on the refund method you choose:
- Cash: If you opt for a cash refund at a designated refund point after passport control, you’ll receive it immediately.
- Credit/Debit Card: Refunds to credit or debit cards typically take up to 9 days to process.
- Bank Transfer: Bank transfers usually take the longest, and the processing time can vary depending on your bank and location. It may take more than 5 business days, and you might incur transfer fees from your bank.
Important points to consider:
- Validation Time: You must leave the UAE within 6 hours of completing the validation process at the airport or border crossing. If you don’t depart within this timeframe, your refund might be canceled.
- FTA Processing: The Federal Tax Authority (FTA) typically processes the VAT refund request within 20 business days. Once approved, the refund is usually credited within 5 business days. However, sometimes the FTA might require a longer period to consider the application.
Therefore, while cash refunds are instant, card refunds usually take around 9 days, and bank transfers can take longer. It’s always best to allow sufficient time for processing, especially if you choose a bank transfer.
What items qualify for VAT refunds?
Generally, most goods purchased in Dubai are eligible for a VAT refund under the Tourist VAT Refund Scheme, with some key exceptions. Here’s a breakdown:
Eligible Items:
- Most retail goods: This includes items like clothing, electronics, jewelry, perfumes, cosmetics, souvenirs, and other general merchandise.
Items NOT Eligible for VAT Refunds:
- Goods consumed in the UAE: This is the most important exclusion. Food, beverages, and other items that are consumed or used during your stay in the UAE are not eligible for a refund.
- Services: Services such as hotel stays, restaurant meals, entertainment, and transportation are not eligible for VAT refunds.
- Motor vehicles, boats, and aircraft: These are specifically excluded from the scheme.
- Goods not accompanied by the tourist at departure: You must physically take the purchased goods with you when you leave the UAE to claim the refund.
- Goods purchased online: Purchases made online, even if from a UAE-based retailer, are generally not eligible for the tourist VAT refund.
- Goods that have been used, fully or partly, in the UAE and are not accompanied by the original packaging.
Know more about VAT refunds for tourists in Dubai:
Eligibility and Basic Information:
- Can tourists get a VAT refund in Dubai? Yes, tourists can claim a VAT refund on eligible purchases.
- Who is eligible for a VAT refund in Dubai? Non-UAE residents visiting on a tourist visa.
- What is the VAT rate in Dubai? The standard VAT rate is 5%.
- Is there a minimum spend for VAT refunds in Dubai? Yes, there is a minimum spend per invoice (currently AED 250).
- What purchases are eligible for a VAT refund in Dubai? Most goods are eligible, but there are some exceptions (e.g., consumed food and beverages).
The Refund Process:
- How do I claim a VAT refund in Dubai? By obtaining a tax-free form from participating retailers and validating it upon departure,
- What is a Tax-Free form? A document provided by participating retailers that records your purchase for VAT refund purposes.
- Where do I validate my VAT refund in Dubai? At Planet Payment validation points at airports, seaports, and land borders.
- What documents do I need to claim a VAT refund? Your passport, Tax-Free forms, and purchase receipts.
- What are the VAT refund options in Dubai? Credit/debit card, cash, or bank transfer.
Specific Scenarios and Concerns:
- Can I get a VAT refund if I’m transiting through Dubai? Yes, if you meet the other eligibility criteria.
- What if I lose my Tax-Free form? It’s difficult to get a refund without the form, so it’s important to keep it safe.
- Is there a time limit to claim a VAT refund? Yes, you must export the goods and validate the purchase within 90 days.
- How much VAT will I get back? You’ll receive the VAT paid minus a small administration fee.
- Can I claim VAT on hotel stays or services? Generally, no. The refund scheme primarily applies to purchased goods.
Practical Information:
- Where are the Planet Payment validation points at Dubai Airport? They are located in the departure areas. Check airport signage for specific locations.
- Is there a VAT refund app for Dubai? Planet Payment provides digital solutions for VAT refunds, check their website or app stores.
- How long does it take to get a VAT refund in Dubai? This varies depending on the refund method. Card refunds are usually faster than bank transfers.
- What is the maximum cash refund I can get at Dubai Airport? There is a limit on cash refunds, which you can check with Planet Payment or at the validation points.
- Where can I find more information about VAT refunds in Dubai? On the Planet Payment website or the Federal Tax Authority (FTA) website.