Tourists visiting Dubai and the UAE can now reclaim VAT on their online shopping purchases, thanks to a world-first digital tax refund system launched by the Federal Tax Authority (FTA). The fully paperless scheme extends the UAE's existing tourist VAT refund programme — previously limited to physical stores — to eligible e-commerce transactions for the first time anywhere in the world.
What Makes This a World First
Since the UAE introduced its 5% VAT in 2018, tourists have been able to reclaim tax on in-store purchases at registered retailers. Online shopping was excluded — until now. The FTA's new e-commerce VAT refund system is the first of its kind globally, bringing the same benefit to digital shoppers and making the UAE an even more attractive destination for tech-savvy international visitors.
How the UAE's Online Shopping VAT Refund Works
The system is entirely paperless and operates through FTA-accredited e-commerce merchants:
- Tourists enter their passport details and personal information during checkout on a registered platform. - Purchases generate digital invoices, which are verified through the shopper's portal. - Eligibility is confirmed at the point of delivery or when the purchased goods are shipped. - Refunds are processed swiftly and completed before the tourist departs the UAE — no paper forms, no airport queues.
Khalid Ali Al Bustani, Director-General of the FTA, said: "This electronic system allows tourists to reclaim VAT on their e-shopping purchases during their visit and it is now a world-first."
Partnership with Planet
The system was developed and is operated in partnership with Planet, the authorised operator of the UAE's tourist VAT refund scheme. Planet manages the processing infrastructure, enabling tourists to submit their travel document details at checkout and receive their refunds digitally.
Why This Matters for Dubai Tourism
This initiative reinforces Dubai and the UAE's standing as premier global tourism destinations. The seamless, paperless VAT refund for online shopping caters directly to modern travellers who prefer e-commerce over traditional retail. By removing the friction of manual refund claims, the FTA is aligning the tourist shopping experience with the UAE's broader digital-first government services strategy.
