Tourists can get VAT refund of maximum of Dh7,000 a day

By DG Staff

VAT Kiosks

ABU DHABI 8 July 2019: A daily maximum of Dh7,000 for cash refunds of Value Added Tax (VAT) for tourists applying through the Tax Refunds for Tourists Scheme, has been set by Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance and Chairman of the Federal Tax Authority (FTA).

FTA Director-General Khalid Ali Al Bustani said: “The new decision regarding the maximum daily amount a tourist can reclaim in cash is in line with the UAE’s overall strategy to reduce reliance on cash in financial transactions, and benefit from the country’s advanced digital and technological infrastructure.”

Al Bustani went on to say that the authority is taking all necessary measures to support the UAE’s smart government initiative, which emphasises the e-payment sector, building on the UAE’s success in payment solutions in general. “With that in mind, the FTA installed several self-service kiosks where tourists can reclaim the VAT they incurred on purchases in the UAE at any of the exit ports covered by the Tax Refunds for Tourists Scheme,” he noted.

The FTA Director-General further added that the advanced service makes it easier and faster to process refunds for tourists on taxes they incurred during their stay in the UAE. The procedures involve a few simple online steps that help users determine the taxes eligible for a refund; verify that the purchased items are with them when applying for the refund; and then recover the taxes through an automated process without interacting with employees, using the self-service kiosks placed at all ports of entry and exit included in the tax refund scheme.

Tourists can submit their tax invoices on purchases they made at retail outlets registered within the scheme, along with their passport and credit card. Eligible applicants can recover an unlimited amount of taxes incurred if the said amount is transferred to their card, while cash refunds are limited to AED7,000 per tourist per day.

Dubai Gazette