With the introduction of VAT in the UAE, among all other schemes ‘Tax Refund Scheme for Tourists’ has been the most awaited one. UAE has been a destination for millions of tourists for its Attractive Tourist Destinations, Business Hubs, Luxury Shopping, and its ultramodern architecture.
The Scheme is applicable to the Retailers who sell goods to the overseas tourists and who meet the participation requirements specified by FTA.
Conditions to avail VAT Tourist Refund Scheme
- Goods should be bought by the tourist in the UAE.
- The retailer will have to register itself with FTA for participating in the scheme.
- A tourist visiting the UAE must exit UAE within 90 days from the date of shopping along with the items bought.
- In order to get the VAT Refund, tourists should only buy from registered businesses for the tourist refund scheme in the UAE.
- The tourist can refund the tax they paid for their shopping only from the outlets and point of sales which are registered under the Tax Refund Scheme for Tourists.
- Where the retailer has correctly reimbursed the amount of Tax to the Operator, the Retailer shall be able to treat the amount of Tax as a reduction of Output Tax that arises in the Tax Period in which the refund was paid to the Overseas Tourist.
- Registration services to the Retailers selling goods to Overseas Tourists.
- Guide the Retailers in complying with the requirements of FTA for the scheme.