The United Arab Emirates has implemented a value-added tax (VAT) refund system for foreign tourists as part of the broader tax reform introduced alongside VAT. The VAT refund mechanism is designed to enhance the UAE’s attractiveness as a tourist destination and to ensure transparent tax administration.
The tourist VAT refund system has been in operation since 2018 and is now fully functional, based on unified standards established by the UAE Federal Tax Authority (FTA). The process relies on digital technologies and provides seamless integration between retail outlets, the system operator, and VAT refund points at airports, seaports, and land borders across the country.
How the VAT refund system works in the UAE
The VAT refund system for tourists in the UAE is largely digital. It enables automated processing of purchase data and significantly simplifies the refund procedure.
The interaction between retail sellers, the VAT refund system operator, and the tax authorities occurs electronically. In many cases, purchase information is automatically recorded at the point of sale, eliminating the need to retain paper receipts.
VAT refund points are available at international airports in Dubai, Abu Dhabi, and other emirates, as well as at selected land and sea exit points.
VAT refund procedure for tourists
The VAT refund process includes the following steps:
- The tourist purchases goods from a retailer registered in the VAT refund system;
- The retailer issues a tax invoice and electronically registers the purchase in the system;
- Before departing the UAE, the tourist validates the purchase at a VAT refund point;
- The system automatically calculates the refund amount;
- The tourist selects a preferred refund method, typically a bank card.
It should be noted that the actual refund amount is approximately 85% of the VAT paid, as a service fee for processing the refund is deducted.
Main conditions for VAT refunds for tourists
To be eligible for a VAT refund, the following conditions must be met:
- the goods are purchased within the UAE;
- the purchase is made from a registered retailer participating in the VAT refund scheme;
- the buyer holds tourist status and is not a UAE resident;
- the tourist’s stay in the UAE does not exceed 90 days;
- the goods are exported from the UAE within 90 days from the date of purchase;
- the minimum purchase amount per transaction is AED 250;
- the goods are in the tourist’s possession at the time of departure;
- the goods are not included in the list of categories excluded from the VAT refund program.
Exclusions and limitations
The UAE Federal Tax Authority establishes a list of goods and transactions that are not eligible for VAT refunds. As a rule, this includes goods consumed domestically and certain categories of services. VAT refunds apply only to goods physically exported outside the UAE.
VAT in the UAE: general context
As a reminder, value-added tax has been in effect in the UAE since 1 January 2018 at a standard rate of 5%, applying to most goods and services. The introduction of the tourist VAT refund mechanism forms part of a comprehensive tax system aimed at maintaining the country’s competitiveness as an international tourism, trade, and business hub.
The VAT refund system for tourists continues to evolve. Ongoing digitalization, expansion of refund locations, and harmonization of procedures help simplify interactions with tourists and improve the efficiency of tax administration.
Brief summary
VAT refunds for tourists in the UAE in 2026 include:
- a fully operational and streamlined digital system;
- refunds of up to 85% of VAT paid;
- a minimum purchase amount of AED 250;
- convenient refund points at airports and border crossings;
- clear and transparent rules.
