VAT Refund: New Tourist-Friendly Rules in the UAE for 2025

VAT Refund In The UAE Explained 2025

The UAE continues to strengthen its position as a global shopping and tourism hub with its updated VAT refund system for tourists. Since the introduction of a 5% VAT in January 2018, the Federal Tax Authority (FTA) has implemented a range of measures to ensure the tax system supports both residents and visitors. Recent updates, including a higher VAT refund cap and the launch of the Tourist Refund App, are designed to simplify the process, encourage tourism spending, and create a seamless shopping experience for travelers.

The initiative not only aligns the UAE with global tourism standards but also enhances its appeal for visitors seeking luxury shopping experiences, particularly in sectors such as gold, electronics, and fashion.

Paperless VAT Refund

One of the standout features of the new system is the transition to a paperless refund process. The FTA’s Tourist Refund App eliminates the need for physical receipts and invoices. Tourists in UAE can now validate and track their tax-free purchases digitally, significantly reducing the time and effort needed to claim refunds.

• Ease of Use: The app streamlines validation, making refunds accessible at the tap of a button.
• Environmentally Friendly: The paperless system reduces waste, aligning with the UAE’s sustainability goals.

How to Validate Tax-Free Purchases

Tourists must follow these steps to ensure their purchases are eligible for VAT refunds:

1. Request Tax-Free Purchases: At the point of sale, ask the retailer to issue a tax-free tag for purchases of AED 250 or more.
2. Retain Documentation: The retailer will issue a digital tax-free receipt linked to the tourist’s passport.
3. Validate Before Departure: At exit points such as airports, seaports, or land borders, use self-service kiosks to validate purchases.
4. Refund Method: Choose between receiving the refund in cash or a credit card transfer.

VAT Refund Centers in the UAE

Refund kiosks are available at various airports, seaports, and land border points across the UAE.

• Airports: Major international airports, including Dubai, Abu Dhabi, and Sharjah, have dedicated VAT refund zones.
• Seaports: Refund centers are set up at ports serving cruise tourists.
• Land Borders: Travelers exiting the UAE via land can validate their refunds at designated border points.

The kiosks are user-friendly and allow tourists in UAE to process their refunds within minutes.

Keep These Points in Mind

To ensure a smooth VAT refund experience, remember:

1. Refunds are valid only for purchases made from registered retailers.
2. Goods must be in unused condition and carried out of the country.
3. Refunds must be validated within 90 days of purchase.
4. A service fee of AED 4.80 applies to each refund claim.

The UAE’s VAT refund system not only simplifies the shopping experience for tourists but also solidifies its position as a leading retail destination. With tourist spending projected to grow annually, these measures are set to further enhance the country’s appeal on the global stage​.