Tourists in UAE Can Claim World-First VAT Refund on Online Purchases

The UAE’s Federal Tax Authority (FTA) has introduced a paperless VAT refund system for tourists making online purchases while visiting the country, the first of its kind worldwide. The new system allows visitors to claim refunds on the 5% VAT applied to e-commerce retail purchases, expanding eligibility beyond in-store shopping, which has been the standard since the VAT's introduction in 2018.

Tourists can scan their passports, complete transactions digitally, and generate electronic invoices linked to their personal details. Refunds are processed through the shoppers’ portal, ensuring swift refunds upon departure from the UAE.

The system was launched in partnership with Planet, the authorised operator of the VAT refunds system. Tourists can apply for refunds directly through e-commerce platforms registered with the FTA by providing travel document details and verifying their identity during order fulfilment or delivery.

The initiative aims to enhance the UAE's appeal as a global shopping destination by streamlining tax refund procedures for international visitors.