Dubai Introduces World’s First Tax Refund System for Online Shopping by Tourists

Dubai and UAE travelers can now benefit from the newest novelty – a unique opportunity to take advantage of the worlds’ first online shopping tax refund. One of the many digital solutions introduced by the Federal Tax Authority (FTA) of the UAE – a user-friendly application for obtaining a VAT refund on eligible, purchased goods purchased through the Internet.

Eradicating the Exemption of Items Sold through the Internet from VAT Refund

This has been the case since the implementation of the UAE’s 5% VAT in 2018 where tourists could only claim refunds on purchases made at physical stores only. This new system brings that benefit to online shopping making the UAE even more appealing to technologically advanced shoppers around the world. pursues innovative spirit and customer-oriented services tenets of the FTA.

How the New Tax Refund System Is Managed

This is a fully paperless system, which helps the tourists as well.

Visitors use their passports to undertake security scans, and make purchases with the accredited e-commerce businesses associated with the FTA.
The purchases are motivated by digital invoices which are verified in the shoppers’ portal.
Many refunds are done within a short time and effected before the tourist(s) departs the UAE without any trouble.
Speaking about the system, 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.”

Easy Return via Partnership

This system has been designed and now implemented together with Planet which is an authorized operator of the scheme for VAT refund. During the check-out process tourists can fill in their travel document details as well as personal data in order to receive the VAT refund. Customer rights to receive refunds are ascertained at the time of delivery of the goods or when the e-tail ordered products are shipped.

An Overview on a Shopping Centre for Tourists

In this unique service line, Dubai and the UAE further enhance their role as top world tourist destinations. The efficient, and paperless structure of the VAT refund also makes for an improved experience as it targets efficient consumers with specific shopping preferences while they are on their travel trips.