Vat Refund Scheme for Tourist Visa holders
Good News! for tourists in UAE. Visitors and tourists can now claim VAT refund which they have paid on purchases during their stay in the country. Upon leaving, the tourists can reclaim taxes for their purchases from a fully electronic system or self-service kiosks. That means instead of going to an office for claiming refund of VAT, visitors and tourists can now do it by themselves with the help of the fully-automated kiosks installed at designated spaces in ports and airports across the UAE.
The kiosk will seamlessly connect all the retailers who are registered for “Tax Refund for Tourist Scheme” with every ports/airports of entry as well as exit from the country. The Federal Tax Authority (FTA) recently said that the tourists can easily submit the required documents in the kiosks and get the VAT refund via cash or credit card from Planet, the global operator.
So, if you’re in a visit or a holiday, then you can take advantage of this new VAT refund system introduced by the government of UAE. But there are certain things you need to keep in mind, before you can actually claim the VAT refund from the self-service kiosks:
The tax invoices which are issued from 18th November, 2018 will only qualify for claiming VAT refund.
Conditions to Claim VAT Refund:
- The visitor or tourist, who is claiming the VAT refund, must leave the country in maximum 90 days from the date of purchase.
- Purchases must be made from the retailers who are registered with the “Tax Refund for Tourist Scheme” and goods are not excluded from the FTA “Refund Scheme”.
- Within 3 months of purchase, the goods must be exported by the tourist or visitor.
- The goods must be purchased and exported from UAE based on the procedures and requirements of FTA.
Where & How to Claim VAT Refund:
The tourists can claim VAT refund from the special kiosks installed at seaport, airport, or from border port. They would need to submit the tax invoices, and copies of credit card along with the passport. Then the kiosks will automatically verify the eligible taxes for VAT refund, purchases made by the applicant, and then proceed to facilitate the refund. After that, the tourists can get the cash in AED or transfer to credit card.
There is no limit set for the VAT refund amount if the tourists wish for getting the refund via credit card. However, if they opted for the cash refund, then the maximum amount which they can get refund for is set to AED 10,000, per day.
Some of the places where the kiosks are already installed includes Dubai International Airport, Al Maktoum International Airport, Abu Dhabi International Airport, and other airports in Ras Al Khaimah and Sharjah. Not just that, they are also installed at other ports like seaports and border ports across the UAE.
So, if you’re a tourist or visitor to UAE and finding difficulty or having doubts on how to claim your VAT refund, then we, CDA Accounting and Bookkeeping Services LLC can you with that. We are one of the top-notch VAT consultants in Dubai and also among the best VAT consultants in Abu Dhabi.
Also, experience free 1-hour VAT consultation from our leading accounting firm in Dubai.