UAE retailers will now be subject to a VAT refund scheme for tourists. Following the introduction of the 5 per cent Value Added Tax on goods and services, retail outlets are being asked to sign up for an online scheme. The refund will allow tourists and visitors to the UAE to recover their tax on goods and services bought. The programme has yet to specify where these refunds will be issued.
Director general of the Federal Tax Authority, Khalid Ali Al Bustani said: “The system operator will co-ordinate between retailers registered in the tax system and wishing to register for the scheme, connect them with ports of entry and exit all around the UAE,”
“This, in turn, allows tourists who are eligible for a tax refund to request a refund for taxes incurred on their purchases through a state-of-the-art digital system."