The UAE authorities have approved the possibility of obtaining a VAT refund for tourists.
The UAE Cabinet has decided to introduce a system of reimbursement of value added tax for tourists. You can get a refund at special points. This step reflects the strategy of the UAE government aimed at improving the efficiency of the tax system.
The new VAT refund system is aimed at stimulating the tourism industry and will strengthen the UAE's status as a favorite vacation spot for tourists from around the world.
The system will be implemented in the fourth quarter of 2018, the best specialists in this field will be involved in its implementation.
Guests of the United Arab Emirates will be able to receive VAT refunds at special points, provided that the purchased goods are not exempt from tax.
It is worth noting that the development of the tourism industry has a direct impact on the economy. In 2017, the passenger flow at UAE airports reached 123 million people, and the tourism industry's share in the country's GDP was 11.3%, which is equivalent to 154.1 billion dirhams in monetary terms.
Updated:
From November 2018, tourists will be able to return 85% of the value added tax paid when making purchases in the United Arab Emirates upon departure from the country. The remaining 15% will be levied as a fee to the operator of the return system, Planet. The United Arab Emirates Federal Tax Service made clarifications. Details of the VAT refund procedure are described here..
