VAT Free Shopping in UAE- Everything you need to know

UAE is always considered a shopper’s paradise, as the country has outlets of almost all international brands. So, one who loves shopping will definitely choose UAE as their favorite shopping destination. By considering this fact UAE introduced a new rule in 2018, for VAT-free shopping, on VAT refunds on airports for Tourist visa holders. According to this rule, people who are on tourist visas can claim for VAT refund for the purchased products. The claiming process is easy and fast. People can directly walk to the kiosks in the airports to claim their refund. This decision is definitely helped the travel and tourism sector in the country.

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What is VAT refunding and how to claim a VAT refund?

In 2018, the UAE government has introduced Value Added Tax (VAT) of a 5% to goods. With this new introduction of the VAT system, UAE implemented VAT refunding for tourists also. The tourists can claim the VAT amount they paid on the purchase of goods, from the stores under the VAT refund system. They can visit the “Planet Tax-free Shopping” counter/ kiosks at the airports and scan their boarding pass and passport along with the original invoice of the purchasing goods to claim the refund. 85% of the VAT amount will be refunded and there will be a fee of AED 4.80 per tax-free tag.

Criteria for VAT refunding in UAE: Are you eligible or not

There are some criteria for claiming a tax refund at the airport, let’s check all;

  1. The overseas traveler should be above 18 years old and not a resident of the UAE
  2. The crew members of the flights from the UAE are not eligible for a refund.
  3. GCC nationals are eligible
  4. UAE nationals studying outside have some restrictions.

VAT refunding has some exemptions based on the goods like,

  1. Motors vehicles, boats, and aircraft
  2. For those goods that have been consumed partially or fully in the UAE.
  3. Goods that are not accompanied by the travel at the time of traveling from UAE.

The tax refunding process is 100% digital and people don’t need to waste much time on this. The Planet Payment has been authorized by the FTA to operate the Tourist Refund Scheme on its behalf. Make an eligible purchase (minimum AED 250) from the authorized store. At the time of billing, the shop assistant will capture information from the tourist’s Passport or GCC National ID card using the solution (this should be the same Passport or GCC National ID that was used to enter the UAE). After entering the transaction purchase price, the tax-free tag will attach to the backside of the bill. This tag will scan to link the transaction with the Passport /ID card.

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Before going for check-in, the tourist can visit the planet kiosks for claiming a refund and Scan the passport to follow the instructions on the screen. The preferred refund method can be chosen according to their convenience. VAT-free shopping is easy and hassle-free.

The tax-free tag must validate before 90 days from the date of purchase. If it’s not done, the tag will expire, and can’t claim for refund.

How to register a store for tax-free shopping in Planet

By visiting the planet payment website the retailers can register by providing company name, Tax Registration Number, business trading name, address, and the number and locations of the stores. VAT-free shopping facility made a significant change in the growth of the tourism and retail sector. The billing and invoicing of the tax-free shopping can be made easier with the integration of the POS system with the planet solution. Inditech Middle East can help you in this. For more details, please feel free to contact us.

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