ABU DHABI 23 September 2018: The Federal Tax Authority (FTA) has invited retailers, outlets and shops in Value Added Tax (VAT) net, to digitally register for the Tax Refund Scheme for Tourists.
The refund will come into effect as of the fourth quarter of this year.
The authority is implementing the scheme in cooperation with Planet, global operator of the ‘Tax Free’ system, and has identified 4 basic conditions for registering, namely:
- The retailer must be registered with the authority for VAT and have a tax registration number (TRN)
- The supplier’s sales of goods must not be excluded from the refund scheme, as determined by the authority
- The retailer must submit a request to participate in the scheme as determined by the FTA
- The retailer must meet the financial credit requirements specified by the system operator and be committed to submitting Tax Returns and paying due taxes regularly
FTA cautioned that a retailer’s membership in the Tax Refund Scheme for Tourists would be revoked if they fail to meet their obligations, whether those stated in tax laws or in the contract between the system operator and the retailer.
FTA Director General Khalid Ali Al Bustani asserted that the past few days witnessed a great demand for registration in the Tax Refund Scheme for Tourists, adding that the authority continues to organise workshops and seminars – in cooperation with Planet – to introduce retailers already registered for VAT to the simple procedures for registering in the digital system of the Refund Scheme, which is one of the most advanced of its kind in the world.
“Planet will make agreements with retailers to equip them with the technologies needed to be part of the scheme, which link these business to the digital systems of the Federal Tax Authority, as well as airports and land and sea ports. The scheme creates designated places for tourists to apply for a tax refund and easily recover the eligible refundable amounts, which will be accurately calculated through the advanced digital system,” Al Bustani said.