UAE Launched Phase 2 of Tourism Tax Refund Scheme on 16th December

UAE’s Federal Tax Authority (FTA) launched the second phase of the Tax Refunds for Tourists Scheme on Sunday, 16th December 2018. The first phase went into effect on November 18, 2018, and it covered major hubs like Dubai, Abu Dhabi, and Sharjah international airports. FTA launched phase 2 with full preparations and expanded the scheme to a total of 12 air, land, and sea ports across GCC country. The scheme entitled eligible tourists to recover value-added tax (VAT) refund claims incurred on their purchases.

Phase two scheme took forward the previous phase by implementing the scheme nationwide. The scheme covers Abu Dhabi, Dubai, and Sharjah international airports. There are inclusions of three airports in phase two that are Al Ain International Airport, Al Maktoum International Airport, and Ras Al Khaimah International Airport.

Furthermore, phase two also covers two sea ports and four land ports. The sea ports include Zayed Port in Abu Dhabi and Port Rashid in Dubai. The land ports include Al Ghuwaifat Border Post in Abu Dhabi, Hili Border Port and Al Madheef Border Crossing in Al Ain, and Dubai’s Hatta Border Exit.

Khalid Ali Al Bustani, FTA director general said: “We have witnessed great turnout among retailers to register for the Tax Refunds for Tourists Scheme and their numbers continue to increase.” He further added that 3,800 tax refund requests are processed under phase one of the scheme on daily basis.

Khalid Ali Al Bustani also said, “The FTA coordinated with the system operator Planet, running all necessary experiments to ensure the scheme is implemented smoothly and accurately.”

Khalid Ali Al Bustani emphasized on the fact that implementation of the scheme shall enhance the appeal of UAE as a tourist destination, improve internal trade and solidify the country’s position as a commercial hub for the region.