The UAE’s Federal Tax Authority (FTA) on Saturday said, “A system to return Value-Added Tax (VAT) to tourists is nearing its final stages of preparation; the procedure is to correspond with international best practices.”

FTA Director General, Khalid Ali Al Bustani said, “Designated spaces will be provided where tourists can easily reclaim taxes. The digital system determines the taxes that are eligible for a refund and then reimburse tourists. This complements the Government’s commitment to implementing the UAE tax system and ensuring that it is in line with global standards.”

Also adding, “The system operator will be signing agreements with retailers to provide them with the necessary technology to connect with the FTA, as well as with airports, and land and seaports of entry.”

The authority outlined a set of basic conditions for the tourist to qualify for a tax refund through the system, in accordance with the Cabinet Decision:

1. The goods in question need to have been supplied to the tourist within the UAE borders
2. The tourist must have the explicit intention to leave the country within 90 days from the date of supply, along with the purchased supplies; and finally,
3. The goods in question must be exported out of the UAE by the tourist within three months from the date of supply.

The FTA had asserted that the retailers who could meet the requirements that have been set are completely free to register in the system. If at all a tourist does choose to make any purchases with the implication of applying for a tax refund from the supplier that is registered with the tax refund system then, in that case, the necessary documents must be supplied by the supplier, majorly a tax invoice that mentions having met all the legal requirements. The claim must then be submitted by the tourist to the system operator directly and the refunds can be then obtained from the operator.