Dubai VAT Refund Guide: What Tourists Need to Know
Dubai is a top destination for millions of people every year, and one reason for that is the unbeatable shopping and world-class experiences on offer - after all, who wouldn't want to splash out on a bit of luxury? But there's a bit of a catch - all that shopping comes with a 5% VAT charge. The good news is that tourists can get some of that money back - but how?
Luckily for visitors, the UAE has a pretty slick system in place for claiming a VAT refund in Dubai. It's all pretty straightforward and makes it easy to get your money back before you leave the country.
This guide runs you through the whole process, including who's eligible for a VAT refund, how to go about it & how to use a VAT refund calculator to make sure you don't miss out. Whether you're here on business or on holiday, shopping is a big part of the Dubai experience - so we've got you covered.
What is VAT in the UAE All About?
In 2018, VAT (Value Added Tax) was brought into the UAE, and it's pretty straightforward - it's a 5% standard rate that applies to most goods and services you buy in Dubai and across the Emirates. To make things clear, residents and businesses can't reclaim the VAT unless they meet certain tax rules, but if you're a tourist, you may be able to claim back some of the VAT on all sorts of shopping purchases.
The refund system is just one of the ways the UAE government is trying to boost tourism and give a bit of support to the retail sector.
Who Qualifies for a VAT Refund in the UAE?
Not everyone gets a VAT refund, and it's worth checking the rules to make sure you're eligible before you try to claim back your tax.
You've Got to Be a Tourist
Only folks who aren't residents in the UAE can claim a refund. If you've got a UAE resident visa - sorry, you're not in the clear.
You Need to Shop at the Right Places
Only stores that are signed up to the "Tax Refund for Tourists Scheme" qualify for the refund. Look out for the Planet Tax Free logo and you'll know you're in the right place.
You Have to Take the Goods with You
You won't get a refund if you don't end up taking the goods out of the UAE with you.
Minimum Spend Applies
There isn't a minimum spend per receipt, but the total bill has to meet the system's rules for processing.
Some Goods Just Don't Qualify
Certain items are ruled out of the refund system, including:
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Services like spa treatments, hotels and food
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Car rentals
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Real estate
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Gold bullion (most of the time)
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Household utility bills
Don't Leave Until You've Validated Your Purchases
If you try to leave the UAE without validating your purchases, you won't be able to get a refund.
Understanding all this is pretty key to making sure you get your hands on that UAE tax refund money for all your VAT-refund-eligible shopping purchases.
How the Tourist VAT Refund System Works in Dubai - A Guide to Getting Your Cash Back
The UAE has teamed up with Planet, who are the folks behind the scenes making sure your VAT refund is a breeze. The system is super easy to use, fast as lightning and designed to be really user-friendly.
Here’s the lowdown on how it all works:
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You do some shopping at a participating store, no problem, just whip out your passport at the checkout.
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The retailer slaps a Tax-Free tag on your purchase linking it to your shop via the Planet system - no paper forms to fill in or anything.
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Before you bash off, head to an airport, land border or seaport kiosk to get your purchases validated.
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You then choose how you want your refund, cash or on your card.
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And that’s it! Once your purchases have been validated, your refund will be sorted.
This bit of technology makes the VAT refund in Dubai one of the simplest in the whole world to sort out.
Step-by-Step Guide to Claiming VAT Refund in the UAE for Tourists: A Complete Walk-Through
Below is the full lowdown on how to claim a VAT refund in the UAE for tourists in as much detail as you need.
1. Shopping at Registered Retailers is the Easy Part
Just look out for the "Tax Refund for Tourists Scheme" sign when you’re shopping - that's how you know you're in the right place! Then just pop your passport over the counter at the checkout and you’re good to go.
Your purchase will be linked to the refund system electronically - none of that tedious paperwork nonsense.
2. Collect Your Tax-Free Purchase Code from the Retailer
The retailer will give you a digital record of your tax-free purchase, and keep hold of the receipts just in case there’s a spot check.
3. Head to the VAT Refund Kiosk Before You Leave the UAE
You can find the Planet Tax Free kiosks at Dubai International Airport (DXB), Abu Dhabi Airport, Sharjah, and all the land and seaports.
4. Get Your Purchases Validated at the Kiosk
You will need to scan:
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Your passport
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Boarding pass
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And your purchase receipts, if necessary
If there’s a bit of paperwork to sort out, a staff member may have a look at your goods.
5. Decide How You Want Your Refund Paid Out
You can get your refund in:
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Cash (AED), but be aware that there are limits per day
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Credit/debit card refund, nice and easy
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Bank transfer (in some cases), subject to whatever the bank says
That’s it! This is the whole lowdown on how to get a VAT refund in UAE for tourists.
Claiming VAT Refund Online - The Bottom Line
Loads of people are scratching their heads about how to get a VAT refund in the UAE when you're just a tourist.
So here's the lowdown:
Sorry To Disappoint - Full Refunds Just Aren't Possible Online.
But You Can Start The Ball Rolling Digitally
Using the Planet app, you can:\
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Keep an eye on the purchases that qualify for a refund
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See how much you'll get back
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Set up your payment details beforehand
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Check out your refund history
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Get a rough idea of how much you'll get back with the UAE VAT refund calculator
Still, though, you'll have to get your validation sorted in person when you leave the UAE.
The UAE VAT Refund Calculator - Work Out Your Return
The UAE VAT refund calculator is a nifty tool that gives you a pretty good idea of how much you're going to get back. Usually, it's 85% of the VAT you paid, minus a tiny bit of admin costs.
For Example:
Let's say you blow AED 1,000
VAT on top of that is AED 50
So you should get around AED 42.50 back
Having a rough idea of how much you're going to get back is super handy when it comes to budgeting before you pay.
Where Can Tourists Get Their VAT Refund Back in Dubai?
You can claim your refund at the following locations:
Where Can Tourists Get Their VAT Refund Back in Dubai?
You can claim your refund at the following locations:
Dubai International Airport – Terminals 1, 2, and 3 - it's one of the main places
Another option is Al Maktoum International Airport
You can also get it at Dubai Cruise Terminals, which a lot of people use
Or you can try at the land borders - Hatta and Al Ghuwaifat
The self-service kiosks are open 24 hours a day, seven days a week.
5 Common Mistakes to Watch Out For When Claiming VAT Refund in Dubai
1. Not checking your receipts before you leave the country
2. Buying from dodgy retailers who aren't registered
3. Not leaving enough time between buying and flying out (you wouldn't want to miss out)
4. Won't get a refund if your purchase is damaged or has been opened, or worse still, consumed
5. Don't put your goods in your checked luggage - it's just easier to keep it in your carry-on
Follow these simple tips and your VAT refund in Dubai should be a breeze.
Can UAE Residents Claim Their VAT Refund?
Sadly, no, residents aren't eligible for a VAT refund in Dubai. It's actually intended for tourists only. So if you live in the UAE, regardless of where you come from, you still won't be able to get it.
The self-service kiosks are open 24 hours a day, seven days a week.
Why Dubai Goes the Extra Mile for Tourists with VAT Refunds
The UAE thought up this system for reasons like:
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To boost tourism\
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Make shopping a whole lot easier for visitors\
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Give a leg up to local retailers\
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Get international tourists to spend more\
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And, of course, to make the travel experience just that bit more enjoyable
Dubai is well known for being tourist-friendly, and the VAT refund system really does make a big difference.
Tips to Get the Most Out of Your VAT Refund in Dubai
✔ Start shopping early on in your trip
✔ Keep all your receipts in order
✔ Make sure to validate your purchases before you check in your bags
✔ Use the Planet app to keep track of everything
✔ Get to the airport with plenty of time to spare - that way you won't have to stand in line
✔ Check the Dubai VAT refund calculator to get an idea of what you might be able to claim back
The Bottom Line
The VAT refund scheme in the UAE is a bonus for tourists, letting them get a chunk of the tax they paid back on eligible purchases. Dubai's got a pretty slick, modern system all set up for making it quick, simple and hassle-free to get your VAT refund in Dubai. By understanding the rules, knowing your way around how to claim your VAT refund in UAE as a tourist and getting all your documents in order, you can make sure you get the most out of your refund and sail through the departure process with ease.
Whether you're one of those people who prefer to use the self-service kiosks at the airport or use Planet's app to prepare online, knowing exactly how to apply for a VAT refund in UAE means you can save money and avoid any last-minute stress on your travels.
How Flyingcolour Tax & Consultant Can Help You Make Sense of VAT Refunds
Flyingcolour Tax & Consultant can lend a hand with all sorts of things, like:
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VAT compliance services (we know it sounds dull, but trust us, it's a big help)\
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Getting stores serving tourists on the VAT register\
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Sorting out the VAT refund system\
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Giving staff training so they know how tourist VAT refunds work\
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Advising on all the latest FTA regulations\
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Helping with VAT audits\
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Even sorting out, setting up and integrating with the Planet Tax Free system
Whether you're a retailer catering to tourists or a big corporate entity dealing with all the ins and outs of VAT compliance, our team will make sure you get it right and stay on the right side of the taxman.
FAQs
1. How do tourists actually get a VAT refund in Dubai?
You just go to the airport kiosks with your passport and receipts and pick a refund - either cash or a refund on your card.
2. Can Americans get a VAT refund in the UAE?
Yeah, anyone who's not resident in the UAE - including US citizens - can get a VAT refund on their eligible purchases.
3. How much VAT refund can I expect to get in Dubai?
You'll get back a whoppin' 85% of the VAT you paid - minus a wee processing fee, of course. The Dubai VAT refund calculator will give you a better idea of what to expect.
4. Do I actually need my passport to claim my VAT refund?
Yep, you will - you'll need it to validate your purchases when you're shopping and again when you're at the refund kiosks.
5. Can VAT refunds be done online?
You can track and prepare online, but in the end, you still have to go to the kiosks at the airport to validate your claim and get your refund.
To learn more about Dubai VAT Refund Guide: What Tourists Need to Know, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.