The UAE Cabinet approved the “Cabinet Decision No. (41) of 2018 – Introducing the Tax Refunds for Tourist Scheme”, which was issued last 24 July 2018. The said Cabinet Decision provides the following mechanism of the Tourist Refund Scheme (the “Scheme”):

1. The Person (or the “Tourist”) shall meet the following requirements in order to be eligible for a tax refund on its purchases and exports of goods:
   • The conditions in Clause (2) of Article 68 of Cabinet Decision No. (52) of 2017 are met;
   • The goods are purchased from a Retailer who is participating in the Scheme;
   • The purchase of the goods from the Retailer is conducted in accordance with requirements as determined in a decision issued by the Chairman;
   • The export of goods is conducted in accordance with requirements as determined in a decision issued by the Chairman;
   • The goods are not excluded from the Scheme by the Authority.
2. The Retailer shall provide the necessary documents for a refund claim under the Scheme as determined by the Authority, including a tax invoice, to the person seeking for tax refund.
3. The Tourist shall request his/her tax refund directly from an Operator. The Tourist is not allowed to request a tax refund directly to the Retailer.
4. The Operator is allowed to charge fees for administering of the refund but not exceeding to the amount approved by the Cabinet. The said fees can be deducted from the amount to be refunded to the Tourist.
5. The Tourist may be required to present goods for validation and inspection.
6. If the Operator correctly issued a tax refund to the Tourist, the former is allowed to reimburse the refunded amount to the Retailer who sold goods to the Tourist.
7. If the Retailer correctly reimbursed the tax to the Operator, the said amount of tax can be deducted from the output VAT in the tax period in which the refund was paid to the Tourist.