UAE launches VAT refund for tourists shopping online
Travellers in the UAE can immediately reclaim VAT for purchases from e-commerce sites while visiting the UAE, government said on Monday.
This new e-commerce VAT refund scheme will allow platforms and e-stores that have registered with the Federal Tax Authority (FTA) to refund VAT on their online purchases to the tourists in UAE while they are here.
Tax refunds from the Authority — now made easy for tourists to pay, pay, get their taxes refunded. Tourists in the UAE can request VAT refund directly via approved e-commerce stores and can submit travel documents and details about themselves to confirm their eligibility at the point of purchase. When the tourist’s identity is verified, he gets a refund when he leaves the country and it is seamless.
This project builds on the success of the FTA’s previous work such as its digital tax refund program, which launched more than two years ago. That one switched paperwork for entirely digital processes: tourists scan passports, make purchases, get electronic invoices – all this makes the refund quicker and more efficient.
This initiative, which has been launched in collaboration with Planet, the licensed VAT refund operator for visitors, said the FTA today, is an extension of its drive to use proactive, innovative measures.
The decision follows the UAE’s aspiration to be the world’s best government and it will also help make it more competitive in industries such as tourism and e-commerce. The new regime is expected to boost the nation’s digital and innovation performance internationally and solidify its dominance in both.
FTA Director-General Khalid Ali Al Bustani said the inauguration of this first of its kind system will help the UAE maintain its position as the global top tourist destination in terms of safety, hospitality and premium attractions. This is a system that has been praised by visitors as easy and fast to retrieve VAT on both offline and online purchases made during their visit.
Also, the Federal Tax Authority added that whether the tourists ordered from offline stores or on online stores, VAT refunds will be granted for the store as long as it is registered with the Authority.
Comments