VAT Refund for Tourists in Dubai: Everything You Need to Know

Dubai is a top tourist destination known for its luxury shopping, world-class attractions, and tax-free shopping experience. However, with the introduction of Value Added Tax (VAT) at 5%, visitors must pay VAT on most goods and services. To enhance Dubai’s appeal to international travelers, the UAE government allows tourists to claim VAT refunds on eligible purchases before leaving the country. Understanding the eligibility criteria, refund process, and collection points can help tourists maximize their savings while shopping in Dubai. This blog provides a detailed guide to the VAT refund system for tourists in Dubai, ensuring a smooth and hassle-free experience.

Understanding VAT refunds for Tourists in Dubai

Dubai’s Tourist VAT Refund Scheme allows international visitors to claim back 85% of the VAT paid on eligible purchases, with a small processing fee deducted from the total refund amount. The VAT refund system is managed by Planet Payment, an authorized refund operator working with the Federal Tax Authority (FTA). Tourists can submit refund claims at designated airport counters, seaports, and border exit points.

Who is Eligible for a VAT Refund in Dubai?

To qualify for a VAT refund, tourists must meet the following conditions:

• Must be a non-UAE resident and have a valid passport from another country.

• Must purchase goods from retailers participating in the VAT refund scheme.

• Goods must be exported (taken out of the UAE) within 90 days from the date of purchase.

• Minimum purchase amount per invoice must be AED 250 to be eligible for a refund.

• Purchases must be verified at an official refund counter before leaving the UAE.

Who is Not Eligible for a VAT Refund?

• UAE residents, even if they are traveling outside the UAE.

• Tourists who fail to validate their invoices at the VAT refund counter before departure.

• Purchases made at non-participating stores (some small shops and businesses may not be part of the refund system).

• Services, hotel stays, food, and entertainment expenses (only physical goods are eligible for VAT refunds).

How to Claim a VAT Refund as a Tourist in Dubai

Tourists can follow a simple step-by-step process to claim VAT refunds before leaving the UAE:

Step 1: Shop at VAT-Registered Retailers

• Look for stores displaying the “Tax-Free” logo at shopping malls and retail outlets.

• Request a VAT refund invoice when making a purchase.

• Provide your passport details at the store to link the invoice to the refund system.

Step 2: Get a Digital Tax-Free Tag on Your Purchase

• The retailer will issue an electronic tax-free tag that is linked to the purchase.

• You will receive a VAT refund receipt, which must be kept for verification.

Step 3: Validate Your VAT Refund at the Airport or Exit Point

• Before departing the UAE, visit a Planet Payment VAT refund kiosk or counter at the airport, land border, or seaport.

• Scan your passport and VAT refund receipts at the self-service kiosk or present them to a VAT refund officer.

• Ensure that the purchased goods are available for inspection (customs officers may request to see the items).

Step 4: Receive Your VAT Refund

• Once the claim is approved, tourists can choose between:

• Cash refund (available at selected refund points).

• Credit card refund (processed within a few days).

Processing Time: Credit card refunds typically take 7 to 10 business days to reflect in the account.

Where Can Tourists Collect VAT refunds in Dubai?

Tourists can claim VAT refunds at multiple locations across Dubai, including:

1. Dubai Airports

Dubai International Airport (DXB) – Terminal 1, 2, and 3 Al Maktoum International Airport (DWC)

2. Seaports

Port Rashid Dubai Cruise Terminal

3. Land Borders

Al Ghuwaifat (border with Saudi Arabia) Hatta Border (border with Oman) Tip: Arrive at least 30–45 minutes earlier than your departure time to complete the VAT refund process smoothly.

What Purchases Are Eligible for a VAT Refund?

Tourists can claim VAT refunds on physical goods that they take with them when leaving the UAE.

Eligible Purchases

• Luxury items (watches, jewelry, designer handbags).

• Electronics (phones, cameras, laptops).

• Fashion and apparel.

• Perfumes and cosmetics.

• Gifts and souvenirs.

Non-Eligible Purchases

• Hotel stays and accommodation services.

• Restaurant bills and food expenses.

• Transport services (taxi fares, metro, car rentals).

• Medical and healthcare services.

Tips to Ensure a Smooth VAT Refund Process

• Always request a VAT refund receipt when making purchases.

• Keep physical and digital copies of all invoices and refund receipts.

• Check if the retailer is part of the VAT refund scheme before purchasing.

• Validate purchases at a VAT refund counter before leaving the UAE.

• Choose credit card refunds for a safer and hassle-free refund process.

How Young and Right Can Help

Understanding and claiming VAT refunds can be overwhelming for tourists unfamiliar with the UAE’s tax system. Young and Right provides expert VAT consultancy services, ensuring tourists can easily claim their VAT refunds without confusion or delays.

1. VAT Refund Guidance for Tourists

• Helping tourists understand eligible purchases and refund conditions.

• Providing step-by-step assistance on claiming VAT refunds before departure.

2. VAT Refund Assistance for Businesses

• Assisting retailers in registering for the Tourist VAT Refund Scheme.

• Helping businesses issue VAT-compliant invoices for tourist refunds.

• Ensuring full compliance with UAE VAT laws and FTA regulations.

3. Handling VAT Refund Documentation

• Verifying tax invoices and receipts to ensure they meet refund requirements.

• Tracking and monitoring VAT refunds for smooth processing.

• Advising tourists on the best refund collection methods.

4. Assisting with VAT Refund Disputes and Appeals

• Helping tourists resolve rejected VAT refund claims by providing additional documentation or clarifications.

• Liaising with Planet Payment and the FTA to ensure that refund requests are processed correctly.

• Providing support for businesses facing VAT Compliance issues that may affect refund claims.

With Young and Right, tourists and businesses can ensure a hassle-free VAT refund process, maximizing savings while staying fully compliant with UAE tax laws.

Conclusion

Dubai’s VAT refund system for tourists enhances the shopping experience by allowing international visitors to reclaim a portion of the VAT paid on eligible purchases. By following the correct refund procedures, shopping at registered retailers, and validating purchases before departure, tourists can ensure a smooth and seamless VAT refund process. For businesses and tourists seeking expert guidance, Young and Right provides professional VAT consultancy services, ensuring that all refund claims are handled efficiently and in compliance with FTA regulations.