Value Added Tax “VAT” is on all the goods and services in the UAE from 1st January 2018. However, tourists can claim a refund of 5% VAT paid on eligible purchases if they meet certain criteria. In this blog post, we will guide you on how to refund VAT for tourists in Dubai.
The following points are considered while applying for a 5% VAT refund in Dubai by tourists. It is important to note that VAT refunds are subject to certain conditions and restrictions.
- Eligible purchases: The purchase must be made from a retailer that participates in the Dubai Tax Refund Scheme.
- Refundable amount: The refundable amount is the VAT paid on the purchase, which is currently set at 5% of the purchase price.
- Proof of purchase: To claim a VAT refund, tourists must present their passport and original tax invoices or receipts at the time of their departure from the UAE.
- Refund process: To claim a VAT refund, tourists can visit a Tax Refund Counter located at the Dubai International Airport.
Uncover The Secret to Saving Money on VAT in Dubai: A Guide for Tourists
In Dubai, 5% VAT is a standard cost for all tourists visiting Dubai and making purchases of any item.
However, tourists can claim the VAT refund if they meet specific criteria set by the Dubai Tax Refund Scheme.
In this blog post, we will discuss all the points which tourists need to consider while applying for a VAT refund.
It also includes what purchases are eligible, the refundable amount, and the process for claiming a VAT refund.
What Purchases are Eligible for VAT Refunds in Dubai?
To be eligible for a VAT refund in Dubai, tourists must purchase from participating retailers registered under the Dubai Tax Refund Scheme.
These purchases must also meet specific criteria, including:
- Eligible goods: Eligible goods for VAT refunds include most consumer goods, such as clothing, electronics, jewelry, desert safari tours, and perfumes. Some restrictions may apply to certain goods, such as food, drink, and tobacco products.
- Retailer participation: The retailer must be registered under the Dubai Tax Refund Scheme.
- Export requirement: The purchased goods must be exported outside the UAE within 90 days of the date of purchase.
By understanding the criteria for VAT refunds in Dubai, tourists can take advantage of this opportunity to save money on eligible purchases during their visit.
Refundable Amount For Tourists in Dubai
The amount of VAT refundable in Dubai is currently set at 5% of the purchase price. This means that tourists can claim a refund of 5% of the amount they paid for eligible purchases made from participating retailers.
For example, if a tourist makes a purchase of AED 1,000 from a participating retailer or purchase any tour cost AED 1,000, they can claim a VAT refund of AED 50 (5% of AED 1,000).
The actual refundable amount may vary based on various factors, including the type of goods purchased and the retailer’s participation in the Dubai Tax Refund Scheme.
By claiming the VAT refund on eligible purchases, tourists can effectively reduce the cost of their shopping in Dubai, making it a more affordable and enjoyable experience.
How to Claim VAT Refund in Dubai
To claim a VAT refund in Dubai, tourists must present specific documentation to prove their eligibility. This includes:
- Passport: Tourists must present their passport as proof of identity and as proof that they are eligible for a VAT refund as a non-resident tourist.
- Original tax invoices or receipts: Tourists must present the original tax invoices or receipts for all eligible purchases made from participating retailers. These invoices or receipts must include the retailer’s name and VAT number.
By keeping all original tax invoices or receipts and their passport, tourists can ensure that they are prepared to claim their VAT refund when they leave the UAE.
This simple step can help make their shopping experience in Dubai more affordable and enjoyable.
Proof of Purchase
Proof of purchase is a document that tourists can present to claim a Value-Added Tax (VAT) refund in Dubai. VAT is a tax levied on goods and services in the United Arab Emirates (UAE), including Dubai.
Tourists who are not residents of the UAE can claim a refund of the VAT paid on purchases made during their stay.
To claim a VAT refund in Dubai, tourists must present the following documentation:
- Passport: A valid passport is required to prove the tourist’s identity and nationality. The passport should be presented at the time of making the purchase, as well as when claiming the VAT refund.
- Original Tax Invoices or Receipts: Tourists must present the original tax invoices or receipts for all the purchases they wish to claim a VAT refund for. The invoices or receipts should clearly show the amount of VAT paid, the name and address of the retailer, and a description of the goods or services purchased.
It is important to note that some retailers may not provide tax invoices or receipts for small purchases. In such cases, tourists may need to keep a record of their purchases, such as a credit card statement or a copy of the purchase order.
Additionally, tourists should make sure that the total value of their purchases is above the minimum limit set by the UAE government. The minimum limit is currently AED 250, but it is subject to change.
In conclusion, to claim a VAT refund in Dubai, tourists must present their passport and original tax invoices or receipts as proof of purchase.
The invoices or receipts should clearly show the amount of VAT paid, the name and address of the retailer, and a description of the goods or services purchased.
Tourists should also make sure that the total value of their purchases is above the minimum limit set by the UAE government.
VAT Refund Process For Tourists
The VAT refund process in Dubai is relatively straightforward and involves the following steps:
- Visit a Tax Refund Counter: Upon arrival at the Dubai International Airport, tourists must visit a Tax Refund Counter to submit their claim for a VAT refund.
- The Tax Refund Counter is located in the Departure Terminal, and staff will assist tourists with the VAT refund process.
- Submit the required documentation: Tourists must present their passport and the original tax invoices or receipts for all eligible purchases.
- Receive a Tax Refund Voucher: Upon approval of their VAT refund claim, tourists will receive a Tax Refund Voucher, which they must keep safe as it will be required to receive their refund.
- Receive the refund: The refund amount will be paid in cash, by cheque, or by credit to the tourist’s credit card, depending on the method selected at the time of the refund claim.
The length of time it takes to receive the refund depends on various factors, including the method of payment selected and the volume of claims being processed.
FAQs About VAT
Claiming a Value-Added Tax (VAT) refund at Dubai airport is simple. Tourists can follow to receive a refund of the VAT paid on their purchases during their stay in the UAE. Here are the steps to claim a VAT refund at Dubai airport:
- Keep all original receipts and invoices. To claim a VAT refund, tourists must keep all original receipts and invoices from their purchases, as they will need to present them when claiming the refund.
- Visit a Refund Desk. Tourists can claim their VAT refund at one of the VAT Refund Desks located in Dubai International Airport at the departures area. They will need to present their original receipts, invoices, and their passport.
- Please fill out a VAT Refund Form. The tourist will be given a VAT Refund Form to fill out. Which will ask for their personal information, including their passport details and the value of their purchases.
- Submit the VAT Refund Form and Documentation. Once the VAT Refund Form is filled out, tourists can submit it along with their original receipts, invoices, and passports to the Refund Desk.
- Receive the VAT Refund. If the claim is approved, the tourist will receive the VAT refund. Either in cash or through a credit to their credit card. The refund amount will depend on the VAT paid on the purchases.
It is important to note that tourists must claim their VAT refund before leaving the UAE.
The amount of the Value-Added Tax (VAT) refund in Dubai depends on several factors. Including the amount of VAT paid on the purchases and the total value. In Dubai, the standard VAT rate is 5%.
To calculate the VAT refund. Tourists must add up the VAT paid on all their purchases and subtract it from the total value of their purchases and calculate the 85% of total VAT.
The result is the VAT refund amount. For example, if a tourist spent AED 1,000 on purchases and paid AED 50 in VAT, the VAT refund amount would be AED 42.5. It’s 85% of total VAT you paid.
It is important to note that the VAT refund in Dubai is subject to the minimum limit set by the UAE government.
The minimum limit is currently AED 250, but it is subject to change. This means that tourists will only receive a VAT refund if the total value of their purchases, including VAT, is equal to or greater than AED 250.
In conclusion, the amount of the VAT refund in Dubai depends on the amount paid on the purchases and the total value.
The VAT refund is subject to the minimum limit set by the UAE government. It can be calculated by adding up the VAT paid on all purchases and subtracting it from the total value of the purchases.
In Dubai, there are special machines called Planet Payment kiosks at Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). These kiosks are near the VAT Refund Desk.
If you’re in a hurry, you can use one of these machines to get your VAT refund.
You must give the self-service kiosks your sales receipt from your tax-free purchases.
Your passport and your credit card. The self-service kiosks will then process your refund automatically.
Your refund will be put onto your credit card, or you can take the money out immediately (up to AED 7000). In this case, the self-service kiosks will refund you in dirhams.
In the UAE, tourists can claim a Value-Added Tax (VAT) refund at designated VAT Refund Desks. Located at the departures areas of the country’s major airports, including:
- Dubai International Airport (DXB) Terminal “Terminal 1, 2, 3, and 3 Business”.
- Al Maktoum International Airport (DWC).
- Abu Dhabi International Airport (AUH) “Common area between all terminals.”
- Sharjah International Airport (SHJ).
- Al Ain Airport.
- Ras Al Khaimah International Airport (RKT).
In the UAE, tourists can also claim a Value-Added Tax (VAT) refund at seaports.
- Port Zayed – Abu Dhabi
- Port Rashid – Dubai
In the UAE, tourists can also claim a Value-Added Tax (VAT) refund at land borders with neighboring countries, including:
- Al Ghuwaifat land border with Saudi Arabia
- Al Wajajah land border with Oman
- Hatta land border with Oman
In the UAE, tax-free shopping is available for various goods and products. Some of the most common goods that are eligible for VAT refunds include:
- Clothing and fashion items
- Jewelry and precious metals
- Cosmetics and beauty products
- Electronics and home appliances
- Perfumes and fragrances
- Watches and timepieces
- Souvenirs and gifts
- Tourism services
It is important to note that not all goods are eligible for VAT refunds in the UAE. For example, items considered necessities, such as food, medicines, and basic needs, do not qualify for VAT refunds.
If choosing a cash refund, the maximum refund amount is 35,000 AED per tourist. Any additional value over this amount must be paid to a credit/debit card.
If you are a tourist visiting the UAE from another country and are 18 years old or older. You are eligible for a VAT refund on eligible purchases made during your visit to the UAE.