The United Arab Emirates (UAE) implemented a value-added tax (VAT) system in January 2018. VAT is a consumption tax that is applied to most services and goods supplied in the UAE. The standard VAT rate is 5%.
Business visitors to the UAE may be eligible for a refund of the VAT they pay on certain purchases. The refund process is different for business visitors than it is for tourists.
Eligibility For VAT Refund For Business Visitors
To be eligible for a VAT refund for business visitors, you must meet the following conditions:
- You must be carrying out a business that is not registered for VAT in the UAE.
- You must have a valid business registration certificate from your home country.
- You must be a foreign business that is not registered for VAT in the UAE.
- You must have a valid passport.
- The total value of your purchases must be at least AED 3,000 (excluding VAT).
- You must make purchases from a registered VAT vendor in the UAE.
How To Apply For A VAT Refund For Business Visitors
To apply for a VAT refund, you must submit the following documents to the FTA:
- A completed VAT refund application form.
- A copy of your business registration certificate.
- A copy of your passport.
- Original tax invoices for your purchases.
Vat Refund Procedure For Tourists In Dubai, Abu Dhabi, And Sharjah
Tourists who make purchases from participating retailers in Dubai, Abu Dhabi, and Sharjah can claim a refund of the VAT they paid. The refund procedure is electronic, and tourists can claim their refunds at the point of exit.
To claim a refund, tourists must:
- Make a purchase from a participating retailer.
- Keep the original tax invoice.
- Export the goods from the UAE within 90 days of purchase.
- Submit the tax invoice, a copy of their passport, and a copy of their credit card to a special device at the departure airport, port, or border.
- Once the documents are submitted, tourists will receive their refund in cash or have it transferred to their credit card.
Eligibility For VAT Refunds In Dubai, Abu Dhabi, And Sharjah
Tourists who are 18 years old or older and are not crew members on flights leaving the UAE are eligible to claim VAT refunds on purchases made from participating retailers in Dubai, Abu Dhabi, and Sharjah.
To be eligible for a refund, tourists must:
- Purchase goods from a participating retailer.
- Keep the original tax invoice.
- Export the goods from the UAE within 90 days of purchase.
- Submit the tax invoice, a copy of their passport, and a copy of their credit card to a special device at the departure airport, port, or border.
Refunds are not available for:
- Goods that have been fully or partly consumed in the UAE.
- Goods that are excluded from the refund scheme of the Federal Tax Authority (FTA).
- Countries Eligible for VAT Refunds
The following countries are eligible for VAT refunds from the UAE:
Austria Belgium
Bosnia and Herzegovina Canada
Denmark Finland
France Iceland
Ireland Luxembourg
Macedonia Malta
Netherlands Montenegro
Norway Sweden
Switzerland United Kingdom
Countries Not Eligible for VAT Refunds
The following countries are not eligible for VAT refunds from the UAE:
Bulgaria Croatia
Cyprus Czech Republic
Estonia Germany
Greece Hungary
Italy Latvia
Lithuania Poland
Portugal Romania
Serbia Slovakia
Slovenia South Korea
Spain
Conclusion
VAT refunds can be a benefit for both tourists and retailers in the UAE. Tourists can save money on their purchases, and retailers can attract more customers. VAT refunds can also boost the economy of the UAE by encouraging tourists to spend more money in the country.
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