How Retailers Participate and Register Under Tax Refund Scheme for Tourists in UAE?

The Federal Tax Authority (FTA) in UAE has implemented the tax refund scheme for the convenience of the tourists visiting UAE. This has been a remarkable initiative in line with the continuous efforts by the UAE government to promote the trading activities and for the development of tourism in the country. FTA has been endorsing the scheme among the business enterprises in the region inviting participation from the UAE VAT registered retailers. Retailers shall be aware of the various conditions and the process involved in registering themselves as members under the refund scheme.

How does the tourist tax refund scheme work in UAE?

The electronic system of tourist tax refund scheme is administered by Planet, the system operator in coordination with FTA. Hence retailers who wish to participate in the scheme shall register with Planet to get access to the electronic system. Once registered, on sale of goods which are eligible for tax refunds, the retailer can attach the tax-free tag on the invoice issued which will then allow the respective tourist to claim the refund during their departure from UAE. To know more about how the tax refund can be claimed by tourist in UAE, please refer our article on “How Tourists Can Claim Tax Refund in UAE”

What are the conditions to be met by retailers to participate in the tourist tax refund scheme in UAE?

To register for the tourist tax refund scheme, retailers shall ensure to meet the following conditions:

• The retailer shall have a valid tax registration number (TRN) to show that it is registered with FTA
• There are some excluded goods from the tax refund scheme and the retailer’s goods sold must not be in that excluded list as specified by the authority
• The retailer must request to be part of the tax refund scheme as per the procedure laid out by FTA
• The retailer shall comply with the financial credit requirements as specified by Planet, the system operator and also shall comply with the FTA requirements regarding tax returns and tax payments

What are the steps involved in registering in the tourist tax refund scheme by retailers in UAE?

The process of registration by retailers for the tourist tax refund scheme seems to be very simple which can be done online through the portal facilitated by Planet. Here is the link for this registration process: https://refund.planetpayment.ae/MerchantRegistration

In three easy steps, merchants can submit the registration form with Planet and this involves filling a registration form, reviewing and signing off a contract online and submission of additional documents as required. Supporting documents to be attached for registration include the following:

• Traded license of the merchant
• TRN certificate of the merchant
• Power of attorney
• Specimen of the signature of the signatory of the merchant
• Signed credit check consent form
• Signed contract

What are the other points to be noted by the retailers to participate in the tourist tax refund scheme in UAE?

The registered retailers shall ensure that they comply with the requirements as listed down by FTA and also shall ensure that they comply with the terms mentioned in the contract with the system operator. Any non-compliance in this regard may result in the cancellation of the retailer's membership in the tourist tax refund scheme.

CDA Tax Accountants in UAE

CDA can help you in understanding the various aspects of tax regulation in UAE and their impact on your business activities. If you are facing any challenge with respect to unbundling the tax regulatory provisions, we can ease it out for you by sharing our sector-specific knowledge and experience of serving multiple companies in UAE. We can support you in various areas of your business including accounting, tax, reporting and compliance activities. We have dedicated teams for tax and accounting, who can assist you in the smooth functioning of the financial processes of your company in a more efficient manner.

Hope you got a clear idea on how a retailer can participate and register under a tax refund scheme for tourists in UAE. Need assistance for tax or accounting functions in your business? Feel free to contact CDA for a one-hour free consultation.