Do tourists get VAT refunds in the UAE?
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Yes. An overseas tourist buying goods in the UAE can reclaim the VAT they paid when they leave, through the Tax Refunds for Tourists Scheme at participating retailers and airports/ports.
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The detail
Under the Tax Refunds for Tourists Scheme, an Overseas Tourist (a natural person not resident in the UAE or another Implementing State, not crew, leaving to outside the Implementing States) can claim a refund of VAT paid on qualifying Tax Free Purchases of goods made from registered Retailers. The refund is processed through the Operator, subject to an administrative fee and a fixed per-claim fee deducted from the amount refunded, and cash refunds are capped per 24-hour period.123
What the law says
- Cabinet Decision No. 41 of 2018 establishes the Scheme and defines the Overseas Tourist, Retailer, Operator and Tax Free Purchase who qualify for a VAT refund.1
- The Authority may charge an administrative fee of 13% of the VAT refunded plus a fixed fee of AED 3.6 per claim, deducted by the Operator from the refund.2
- Cash VAT refunds are capped at AED 7,000 per Overseas Tourist per 24 hours (superseding the earlier AED 35,000 cap).23
What it depends on
- The claimant must qualify as an Overseas Tourist - not a UAE or Implementing State resident, and not a flight/cruise crew member.1
- Refunds are only available for goods purchased from Retailers registered for the Scheme, and refunds can be claimed at designated airports, land ports and sea ports.4
- Cash refunds beyond the AED 7,000/24-hour limit are not available in cash and would need another refund method.3
Check before you rely on it
- Confirm the purchase was made from a retailer participating in the Scheme and a Tax Free tag/document was obtained.
- Check the refund is claimed within any applicable time limit before leaving the UAE.
- Verify the refund location (airport/port) supports the Scheme.
Sources (4) — read the official text
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Article (1)
Read the article
Article (1) Definitions In the application of the provisions of this Decision, the following words and expressions shall have the meanings assigned against each, unless the context requires otherwise: State: United Arab Emirates. Authority: Federal Tax Authority. Chairman: Chairman of the Board of the Authority. Tax: Value Added Tax (VAT). GCC States: All countries that are full members of The Cooperation Council for the Arab States of the Gulf pursuant to its Charter. Implementing The GCC States that are implementing a Tax law pursuant to an issued States: legislation. Overseas Tourist: Any natural Person who is not resident in the UAE or any of the other Implementing States and who is not a crew member on a flight or cruise and is leaving the UAE to outside the Implementing States. 1 This is an unofficial translation Scheme: Operations under which the refund mechanism for an Overseas Tourist will be provided. Operator: The provider(s) who is (are) contracted to provide and operate the Scheme in the State. Goods: Physical personal property. Retailers: Businesses that are registered for Tax in the State and engaged in the supply of Goods. Tax Free Purchase: The purchase of a good by an Overseas Tourist that is intended to be subject to a Tax refund under the Scheme. Export: Goods departing the State. Tax Period: A specific period of time for which Tax shall be calculated and charged pursuant to the Federal Decree-Law No. (8) of 2017 on Value Added Tax and is due for payment to the Authority. Output Tax: Tax charged on a supply by the Retailer.
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Article 4 – Fees and Refund2
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Article 4 – Fees and Refund2 1. The Authority may charge fees to the Overseas Tourist as per the following: a. An administrative fee amounting to 13% per cent of the amount of VAT to be refunded to the Overseas Tourist; b. A fixed fee of AED 3.6 per refund claim. 3 2. The Operator shall deduct the fees mentioned in clause 1 of this Article from the amount which will be refunded to the Overseas Tourist on behalf of the Federal Tax Authority. 3. The cash VAT refund shall be limited to a maximum of AED 35,000 per Overseas Tourist per 24 hours.
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Article (1)
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Article (1) The Maximum Amount of Cash Refund The cash VAT refund under the Tax Refunds for Tourists Scheme shall be limited to a maximum of AED 7,000 per Overseas Tourist per 24 hours.
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Article 1 – Date of the Scheme Coming into Effect
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Article 1 – Date of the Scheme Coming into Effect The date of the Tax Refunds for Tourists Scheme coming into effect shall be according to the following: 1. Retailers participating in the Tax Refunds for Tourists Scheme will initiate providing refund claims to tourists as of 18 November 2018. 2. The Overseas Tourist may reclaim VAT at Abu Dhabi International Airport, Dubai International Airport, and Sharjah International Airport, as of 18 November 2018. 3. The Overseas Tourist may reclaim VAT at other UAE International Airports, land ports and sea ports in which the Scheme is applied, as of 16 December 2018. Federal Tax Authority Decision No. 2 of 2018 and its amendments – Unofficial translation 1
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Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer
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