Tourists in Dubai benefit from the country’s world-class shopping experience. From luxury malls to designer goods, everything is available in Dubai. But what makes the experience more engaging and enjoyable is the VAT refund scheme. Through this scheme, tourists can claim back the VAT (Value Added Tax) paid on their purchase during their tour, but only if the eligibility criteria are met.
Understanding VAT In Dubai
In 2018, Dubai, part of the UAE, introduced a tax system. Through this system, VAT was imposed and while the standard rate is 5%; residents & citizens pay it for most goods and services. Whereas, tourists have the option to reclaim and get a VAT refund on purchases made during the trip.
Eligibility Criteria For A VAT Refund In Dubai
To qualify for a VAT refund for tourists in Dubai, one needs to meet the following requirements:
Non-Resident Status: UAE non-residents are qualified to receive a refund of their VAT.
Minimum Purchase Amount: AED 250 is the minimum purchase amount required to be eligible for the fund.
Approved Retailers: Only establishments that are a part of the program and bear the “Tax-Free Sopping” sign are qualified.
Export Goods: Within ninety days following the purchase, the items must be removed from the United Arab Emirates.
Original Receipts: The VAT refund tags and the original receipts that were provided by the retailer at the time of purchase need to be kept.
Items That Qualify For A VAT Refund
Generally, products bought for personal use qualify for the VAT refund in Dubai for tourists; such as:
- Apparel and Accessories
- Jewelry
- Cosmetics
- Luxury Products
Claim VAT Refund For Tourists In Dubai: A Step-by-Step Process
Step 1: Getting A Digital Tax Free Form
To claim a VAT refund in Dubai for tourists, one must shop at the approved retailers or the stores that are participating in the VAT refund scheme. Many of the popular stores are already registered under the program. While you are making the purchase, let the store assistant know that you want to claim a VAT refund. They will then issue you a digital tax-free form. They will need your passport to confirm whether you are buying for yourself or on behalf of someone; as refunds are only available on personal items.
They will then enter your details on their system and before you leave check if they have placed a “tax-free tag” on the receipt.
Step 2: Preserving Receipts
Ensure that you keep all your original receipts and documents preserved, which you’ll need while applying for the refund.
Step 3: Validate Your Purchase
Validating the tax-free form at one of the three designated VAT refund kiosks at Dubai International Airport or other exit points is the next step in receiving a VAT refund. You need the following to have it validated:
- A copy of the tax invoice
- Passport
- Boarding Pass,
- VAT refund form and tax-free tag
When you present these documents to the kiosk, it will determine automatically if you qualify for a refund of VAT.
Step 4: Choose Your Refund Method
For your refund, you have a choice of three methods: cash, credit card, or digital wallet. You have a maximum of six hours from the time you receive the validation to depart the UAE, after which your refund will be canceled. You will receive your refund within nine days if you choose to use a credit card or digital wallet.
You can claim up to 10,000 AED per day and a maximum of 35,000 AED per trip if you are receiving a cash return. Your credit or debit card will be credited with the remaining amount if your refund exceeds that threshold.
Claim VAT Refund In Dubai For Tourists Online
You can initiate the VAT refund process online for your convenience. Here’s how to do it:
- Since some stores provide an online VAT refund service, you can prevalidate your tax forms before you arrive at the airport. You’ll save time by doing this, especially during the busiest travel times.
- Tourist VAT refunds are managed by Planet, Dubai’s tax return operator, and internet portals allow you to follow the status of your refund.
Tips For A Hassle-Free VAT Return Experience
Arrive Early: The procedure of receiving a VAT refund can take some time, so plan and arrive at the airport early.
Arrange Documents: Maintain the orderliness of your invoices, forms, and receipts to avoid delays and time wastage caused by missing paperwork.
Currency Conversion: The amount offered will be in Dirhhams in terms of a cash return. Before transferring the reimbursement into your local currency, consider exchange rate fluctuations.
Follow these tips and processes for an easy VAT refund. Knowing how to claim a VAT refund in Dubai can make shopping more affordable and hassle-free for tourists.