VAT Refund Dubai 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?

On 1 January 2018, value added tax (VAT) was implemented in the UAE, and it's pretty straightforward - it's a 5% standard vat 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 for Tax Free Shopping

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, as stores participating in the tourist refund scheme are usually popular stores, and a shop assistant will normally help link the purchase in the tax refund system at checkout.

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:

Tourists also cannot claim refunds on motor vehicles.

• Services like spa treatments, hotels and food

• Car rentals

• Real estate

• Gold bullion (most of the time)

• 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

Planet is the exclusive operator of the VAT refund for tourists in the UAE, and the scheme started in November 2018. 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:

1. You do some shopping at a participating store, no problem, just whip out your passport at the checkout.

2. 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.

3. Before you bash off, head to an airport, land border or seaport kiosk to get your purchases validated.

4. You then choose how you want your refund, cash or on your card.

5. 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 the VAT Refund Process 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! At registered stores offering tax free shopping, just pop your passport over the counter at the checkout and the retailer will issue a digital tax free form or tax free tag linked to the sales receipt.

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 you should still keep the tax invoice for the goods purchased in case of a spot check, even if the sale is recorded electronically.

3. Head to the VAT Refund Kiosk Before You Leave the UAE

You can find the Planet Tax Free kiosks at Dubai Airport, Abu Dhabi Airport, Sharjah Airport, and all the land and seaports.

4. Get Your Purchases Validated at the Kiosk

You may need to submit your details and supporting documents at the kiosk for validation. You will need to scan:

• Your passport

• Boarding pass

• 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 choose a refund method such as cash, card, or a digital wallet.

• Cash refunds (AED) are available, but they’re capped at AED 35,000 per tourist per day

• Credit/debit card refund, nice and easy

• Bank transfer (in some cases), subject to whatever the bank says

AED 4.80 is deducted per tax-free tag, and the balance is calculated from the total VAT amount and vat paid, not the total VAT.

That's it! This is the whole lowdown on how to get a VAT refund in the 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 support a digital tax journey, but you still can't complete the full vat refund process online.\

• Keep an eye on the purchases that qualify for a refund

• See how much you'll get back

• Set up your payment details beforehand

• Check out your refund history

• Get a rough idea of how much you'll get back with the UAE VAT refund calculator

• Prepare your refund request digitally before in-person validation

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 your vat return. Usually, it's 85% of the total VAT on an AED 1,000 purchase before deductions, 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

Note: self-service kiosks at Dubai International Airport are a common place to claim VAT refund before departure.

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:

• To boost tourism

• Make shopping a whole lot easier for visitors

• Give a leg up to local retailers

• Get international tourists to spend more

• 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 fees or card conversion charges before choosing how to receive the refund

✔ 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 the 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:

• VAT compliance services, including support with federal tax authority compliance and VAT registration where taxable goods exceed AED 375,000\

• Getting stores serving tourists on the VAT register

• Sorting out the VAT refund system

• Giving staff training so they know how tourist VAT refunds work

• Advising on all the latest FTA regulations

• Helping with VAT audits

• Even sorting out, setting up and integrating with the Planet Tax Free system

• Helping businesses submit VAT Refund forms via the FTA portal and request refunds when input tax exceeds output tax

• Assisting after VAT returns are reviewed by the FTA and the refund process moves forward

Whether you're a retailer catering to tourists or a big corporate entity dealing with all the ins and outs of VAT compliance, Flyingcolour® 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 kiosk after validation with your passport and receipts, then choose the available refund method - including cash refunds, a card refund, or a digital wallet.

2. Can Americans get a VAT refund in the UAE?

Yeah, anyone who's not a 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 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.in' 85% of th

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 the Dubai VAT Refund Guide: What Tourists Need to Know, book a free consultation with one of the Flyingcolour team advisors.

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.