UAE’s Federal Tax Authority (FTA) is taking steps to allow tourists visiting UAE to claim a refund of 5% Value Added Tax (VAT) they pay whilst visiting the country. The authority’s decision to implement a system that returns VAT to tourists will upgrade UAE’s status as a premier global tourist destination. The system is set to go live in the fourth quarter of 2018. It will apply on all the purchases made by tourists at “participating retailers”.
While departing from UAE, a tourist can claim all the taxes that they have paid on their purchases in the country. The process is simple, accurate, quick and moreover fully automated with no human involvement.