Value Added Tax (VAT) Refunds are now paperless in UAE.

The UAE’s Federal Tax Authority (FTA) on Wednesday announced the world’s first paperless tax refund scheme for tourists.

Tourist need not to carry papers or bundles of invoices with them to get VAT refund from September 2022. The new system is linked with all retailers and hence tourist need not to carry invoices where previously they were required to retain invoice with planet sticker to present at the time of VAT refund.

What is the minimum amount to spend to be eligible for VAT refund?

Minimum AED250 should have been spent by a tourist to be eligible to get VAT refund.

Khalid al Bustani, director general of Federal Tax Authority, said “The biggest challenge for tourists was to carry a lot of papers to claim the refund. When tourists make purchases, they have a printed invoice with a sticker which shows the reference number of the tourist refund code. When they come to the airport for an audit, they will check the paperwork. This is a lengthy process. Hence, we worked with our partner Planet Tax to ensure that data is ready before the tourist arrives at the airport and can collect the refund,”

He also added that United Arab Emirates is the first country in the world having achieved this milestone.