Tax-Free Shopping in Dubai for Tourists : A Tourist's Guide to VAT Refunds
Tax-Free Shopping in UAE for Tourists
In 2018, a 5% Value Added Tax (VAT) was implemented in the United Arab Emirates (UAE). To make their shopping experience even more satisfying, tourists can, however, take advantage of tax-free shopping in Dubai and claim VAT refunds on qualified items. This tutorial gives you a thorough rundown of the procedure, so you can get the most of your savings and navigate the system with ease.
What is Tax-Free Shopping in Dubai?
Tourists can buy qualified products in the UAE and get a refund for the VAT they spent thanks to tax-free shopping, as long as the products are exported out of the nation. A completely digital system that links participating retailers with all UAE entry and exit points makes this possible. Recall that you have a year from the export validation date to request your VAT reimbursement for validated tags.
Eligible Goods for VAT Refund
The majority of taxable items that you buy in the UAE are eligible for VAT refunds. There are a few exclusions, though:
• Consumed Goods: Items meant for consumption in the United Arab Emirates, such as food and beverages, are not eligible.
• Transportation: Aircraft, boats, and cars are not included.
• Services: Hotel stays, meals at restaurants, and entertainment are not eligible for refunds.
• Online Purchases (Delivered): Items purchased online and delivered to your lodging or another location are not covered.
• Used Items: Items that are not in their original packaging or that are partially or completely used are not eligible.
How to Shop Tax-Free and Claim Your VAT Refund
Here’s a detailed guide on UAE tax-free shopping:
1. Qualifying Purchase: Purchase: qualifying items from merchants who are part of the “Tax Refund for Tourists Scheme.” Ask the employees or look for the “Tax-Free” sign. Make sure you spend at least AED 250 on qualifying items.
2. Request a Tax-Free Receipt: Tell the cashier that you want a VAT reimbursement.
3. Present Travel Documents: Present the cashier with a valid passport or GCC National ID. After scanning your document, they will input your information into the official tax refund operator, Planet.
4. Get a Tax-Free Receipt: Your sales receipt will have a “tax-free” tag attached by the cashier. Keep this tag and receipt secure.
5. Validate at the Airport (Within 90 Days): Before leaving the United Arab Emirates, you have to validate your tax-free purchases at the airport (or other approved validation locations) within 90 days of the date of purchase. Your refund will not be processed until this validation is completed.
Terms and Conditions for VAT Refund Claims
You must fulfill the following requirements in order to be eligible for a VAT refund:
Have at least eighteen years of age.
Buy products from a merchant who is a part of the “Tax Refund for Tourists Scheme.”
Verify that the products you bought (excluding excluded items) qualify for VAT refunds.
At certain kiosks or desks at departure points, physically display the tax invoice, “tax-free” stickers, and the purchased items to Planet employees, if necessary.
Getting Your VAT Back
- Find the Kiosk or VAT Refund Desk: In the departure area, look for Planet’s self-service kiosks or tax-free manned validation desks.
- Get Your Files Ready: Prepare your tax refund forms, tax bills from eligible retailers, and your passport.
- Verify Your Purchases: If asked, show your purchased things and supporting documentation so that Planet staff can inspect them. Your transactions will be verified by them.
- Select Your Method of Refund: Choose between cash, credit/debit card, or WeChat as your preferred mode of reimbursement.
- Get Your Refund: Following approval, a small processing fee (about AED 4.80 per tax-free tag) will be deducted from your VAT refund.