The UAE applies a value-added tax (VAT) at a rate of 5%, which was introduced on January 1, 2018. At the same time, the country provides a special VAT refund mechanism for tourists and foreign visitors, allowing them to recover part of the tax paid on goods purchased within the UAE.
The VAT refund system for tourists operates at international airports in Dubai, Abu Dhabi, Sharjah, as well as at other airports, seaports, and land border crossing points. The refund process is organized through a unified electronic Tax-Free Shopping system, which is connected to thousands of retail outlets across the country.
How the VAT refund for tourists works in the UAE
To use the VAT refund system, a tourist must make purchases at stores registered in the official Tax-Free system. Such retail outlets are usually marked accordingly and issue electronic tax receipts at the point of sale.
When departing from the UAE, the tourist must:
- present electronic or paper receipts from stores connected to the Tax-Free system;
- provide a valid passport;
- confirm tourist status (stay in the country under a tourist visa rather than resident status);
- if required, provide a bank card for the refund.
VAT refunds are processed at specially designated counters located in airports and other border areas. Tourists may choose a convenient refund method – cash or a bank card transfer – subject to the established limits and service fees charged by the system operator.
Important conditions and limitations
It should be noted that VAT refunds do not apply to all types of goods and purchases. Goods must be exported outside the UAE within the prescribed timeframe, and purchases must comply with the requirements of the Tax-Free system. In addition, the system operator may charge a service fee for processing the refund.
The VAT refund mechanism for tourists makes shopping in the UAE more attractive and allows partial tax rebates on purchases, while maintaining transparency and compliance with the country’s tax legislation.
