One of the many unsaid benefits for tourists visiting Dubai is that they can reclaim up to 85% of the VAT that they pay on eligible purchases, thanks to the VAT refund for tourists in the Dubai scheme. There are some ways through which non-residents can benefit from the VAT refund process, which is designed to encourage tourism and boost spending. However, there is a criterion that the tourist must follow. They must purchase a product worth 250 AED at least and complete their refunding process within 90 days. But before diving deeper into the topic, let’s first understand about VAT.
Value-added tax refers to the amount of money that is added to the total cost of the product when some valuable substance is added to the product. This tax applies in most countries to products not sold in raw form. The term value-added itself ensures that customers are provided with improved quality products with the addition of substance. It’s important to note that VAT differs from sales tax which a customer pays when purchasing the product. The VAT refund scheme has been designed to encourage tourism and boost consumer spending by offering visitors a chance to reclaim VAT on purchases they take with them outside the country.
Eligibility Criteria for VAT refunds
There are certain criteria to qualify for a VAT refund.
- Non-resident – You must be a non-resident of UAE or any other GCC country.
- Minimum Purchase – The total amount spent on a single transaction should be at least 250 AED.
- Time Limit – You must submit your VAT refund request within 90 days from the date of purchase.
- Goods not consumed – Ensure that these products are in the country.
- Items not eligible – Vehicles, Boats, aircraft and goods purchased online are not eligible for VAT refunds.
Step by Step process for claiming VAT refund at Dubai Airport
Before Shopping
- Look for VAT-registered retailers – Not all shops here are registered under the UAE tax refund for tourist scheme. So it’s vital to ensure to ask before making that purchase.
- Ask for a tax-free tag – Ensure that the retailer provides a tax-free tag on the receipt, which is essential for the refund. Some retailers may also provide digital tax-free forms.
- Documents Required – Be ready to present your passport or GCC ID card when requesting a VAT-free purchase.
At the Airport
- Validation of Purchases – Before checking in for your flight, Use a self-service kiosk or visit a manned validation desk to validate the purchase before checking in on the flight. It provides self-service kiosks which are available in all 3 terminals of Dubai Airport.
- Documents required: Keep your passport, boarding pass, original tax invoice, tax-free tags, and purchased goods on hand. It’s vital to ensure that the names on these receipts match the names on travel documents.
- Inspection of Goods – In some cases planet staff may require an inspection of the goods before processing a refund.
However, if you plan on leaving the country through the seaport, even then you will be eligible for a VAT refund. To avail VAT refund, you just need to visit the nearest KIOSK or tourist refund office. Just make sure to fill out the application form which will help you avail your refund, either through cash or an operator will transfer the money to your bank account.
Choosing a Refund Method
Once you have validated your claim, you can choose from several refund methods.
- Cash Refund – Available at authorized currency exchange partners, with a daily limit of 10,000 AED in cash.
- Credit/Debit card refund – This refund is typically processed within 9-14 days depending on the card provider.
- Digital Wallet – Some digital platforms like WeChat also provide VAT refund options.
Conclusion
Claiming a VAT refund in the UAE is an amazing way for tourists to recoup some of their shopping expenses. By ensuring all the guidelines have been followed, tourists can have a smooth and hassle-free experience in claiming their VAT refund. Just ensure to validate all the important documents and choosing your ideal refund method.