UAE approves VAT Refund for tourists

UAE approves VAT Refund for tourists

UAE Cabinet Said tax refund system will come into effect from October

Dubai: Tourists visiting the UAE will be able to claim a refund on the five per cent value added tax (VAT) they pay whilst visiting the country, the UAE cabinet announced on Wednesday.

The system is set to go live in the fourth quarter of 2018 and will apply to purchases made on goods at “participating retailers.” The cabinet said that the move was intended to support the growth of tourism.

According to a statement released by the cabinet, the refund mechanism will be overseen by an international firm that specialises in tax recovery services, linking retail outlets and designated tax refund points.

Non-resident tourists may refund VAT on purchases made at participating retailers, provided that such goods are not exempt from the tax system, through designated refund outlets.

The number of passengers through the UAE's airports reached 123 million passengers in 2017, and the total contribution of the tourism sector to the country's GDP reached 11.3 per cent in 2017, equivalent to Dh154.1 billion.

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