Will Tourists also pays VAT in UAE?
Purchase of goods and services by tourists in the UAE will be subject to VAT. However, tourists will be eligible to reclaim the VAT incurred on their purchase of goods under the Tax Refunds for Tourists Scheme subject too meeting following conditions;
✅Goods must be for personal use or for gift. Purchases may be subject to increased checks if it is suspected that these goods are not for personal use
✅ The minimum purchase amount is AED 250 per Tax Free Tag. This can be made up of more than one purchase within the same store group on the same day
✅ The tourist must export the goods and have the Tax Free Tag validated within 3 months of purchase otherwise a tax free refund is not possible
✅ Goods should be available for inspection at the exit points
How does the tourist know which shops offer Tax free shopping?
Look for stores displaying the Planet Tax Free and FTA logo, or ask in store.
How much is the refund?
The refund is 85% of the VAT minus 4.80 AED per Tax Free Tag.
Can Tourist Refund Scheme claims be validated 24/7 at all locations?
Validation will be available 24/7 and refund desks will be open at major airports 24/7.
The tourist can find a list of cash refund points on planetpayment.ae. Planet will process credit or debit card refunds.
The tourist must keep the Tax Free Tag attached to the invoice until their day of departure. On departure, the tourist must present their Tax Free Tag to a member of Planet staff or go to a Planet self-serve kiosk to have the Tax Free Tag digitally validated before checking in their luggage and going through security. At the end of the process, the tourist can choose whether they want a credit/debit card or cash refund.
After validation, the tourist presents their passport/ GCC ID and Tax Free Tags to a Cash Refund Agent. Planet staff will be able to direct the tourist to the nearest cash agent. A tourist can provide card details later to obtain the refund once goods have been validated if they didn't have time to get a refund.
Written By CA Adarsh Janardhanan ACA