What is the tourist refund scheme?
- ♦ The tourist refund scheme is a part of VAT reform in the UAE under which the ‘overseas tourist’ is allowed to claim a refund of the VAT paid by them on the purchases they incurred during the visit of UAE
- ♦ An overseas tourist means an individual who is not the citizen of any of the GCC VAT implementing State as well as who is not a crew member of flight or aircraft any of the GCC country in implementing State.
What are the conditions to avail VAT Refund Scheme for Tourist?
- ♦ Goods should be bought by the tourist in the U.A.E.
- ♦ Tourists will have to show their original passport to the authority.
- ♦ Tourist visiting the U.A.E must exit U.A.E within 90 days from the date of shopping along with the items bought.
- ♦ In order to get the VAT Refund, tourists should buy from registered businesses for tourist refund scheme in the U.A.E.
- ♦ Goods should not have been consumed, fully or partly.
- ♦ Goods should be accompanied by the overseas tourist at the time of leaving the U.A.E
What are the conditions for retailers to take part in VAT Refund Scheme for Tourist?
- ♦ The retailer must be registered with FTA for VAT and have a TRN
- ♦ The supplier’s sales of goods must not be excluded from the refund scheme, as determined by the authority
- ♦ The retailer must submit a request to participate in the Scheme as determined by the FTA.
- ♦ The retailer must meet the financial credit requirements specified by the system operator and be committed to submitting Tax Returns and paying due taxes regularly.
How much amount is the limit for VAT Refund Scheme for Tourist?
- ♦ Minimum expenditure should be AED 250 Dirhams.
- ♦ Tourist will get 85% of the total VAT claims calculated on their purchases after the deduction of Administration fees i.e. Dh4.80 according to the VAT UAE laws. The remaining 15% will go to Planet as administration fees.
- ♦ For cash related refunds, the VAT U.A.E Tourists will be allowed AED10,000 in cash. Exceeding AED 10,000, will be transferred electronically to tourists to a bank account, debit or credit cards.
How to shop Tax Free?
- ♦ The tourist makes an eligible purchase
- ♦ The shop assistant captures information from the tourist’s Passport or GCC National ID card
- ♦ The shop assistant enters the transaction purchase price.
- ♦ The Tax Free Tag is attached to the back of the sales receipt.
- ♦ The Tax Free Tag is scanned to link the transaction with the tourist’s Passport or GCC National ID card.
NOTE : Tax Free Tag and sales receipt are needed for validation when leaving the U.A.E
How to validate Goods?
- ♦ Before check in luggage, take the goods and tagged receipt to one of Planet’s validation points.
- ♦ Scan or enter passport number or GCC National ID card.
- ♦ Follow the instructions on screen, and if you get a green light, validation process is complete
- ♦ If you get a red light, contact one of Planet staff who are standing next to the validation point for help
- ♦ Choose your preferred refund method – credit/ debit card or cash.
- ♦ Planet processes the refund