As part of its initiative to remain a globally competitive tourism and retail hub, the United Arab Emirates (UAE) offers a Value Added Tax (VAT) refund scheme for non-resident visitors. This policy allows eligible tourists to recover VAT paid on qualifying purchases during their stay. Since the implementation of VAT in January 2018, this refund mechanism has become an important part of the UAE’s tourism infrastructure.
This article outlines the full process, conditions, and important considerations related to claiming VAT refunds as a tourist in the UAE.
The UAE imposes a Value Added Tax (VAT) at a standard rate of 5 percent on the sale of most goods and services. While this applies to residents and businesses, the government allows non-resident tourists to claim a refund on the VAT paid on certain goods purchased during their stay. This aligns with international best practices and encourages tourism-related spending.
The VAT refund process is administered by Planet, the official operator appointed by the Federal Tax Authority (FTA) of the UAE. The system is designed to be fully electronic and streamlined, with refund kiosks available at all major airports, ports, and border crossings.
A tourist may claim a VAT refund in the UAE if the following conditions are met:
The claimant is a non-resident of the UAE.
The claimant is 18 years of age or older.
The goods were purchased from a retailer registered under the Tourist Refund Scheme.
The goods are exported from the UAE within 90 days of the purchase date.
The goods must be physically carried out of the country by the tourist, not shipped.
It is important to note that VAT refunds are available only for physical goods. Services such as hotel accommodations, car rentals, and restaurant meals are not eligible under this scheme.
Electronics
Watches and jewelry
Fashion and accessories
Souvenirs and gifts
Cosmetics and perfumes
Food and beverages
Hotel and hospitality services
Consumables used within the UAE
Any services rendered
Goods must remain unused and be exported in the tourist’s personal luggage to qualify.
Tourists must make their purchases from stores that are registered under the Tourist Refund Scheme. These stores display signage indicating their participation. At the time of purchase:
The tourist must present a valid passport.
The store will generate a digital tax invoice through the Planet system, which includes a QR code.
Before leaving the UAE, the tourist must complete the refund validation process at a Planet kiosk located in the airport or at the exit port. The process involves:
Scanning the passport or travel document.
Scanning the boarding pass.
Scanning the digital tax invoice or QR code.
Presenting the purchased goods for inspection if requested by customs.
This validation must occur prior to checking in the goods or passing through immigration.
Once validated, the tourist may choose to receive the refund via:
Credit or debit card (no monetary cap applies).
Cash in AED, subject to a maximum daily limit.
The refunded amount is subject to the following conditions:
A minimum purchase amount of AED 250 per invoice is required.
The tourist receives 85% of the VAT paid, as 15% is retained as an administrative fee.
Cash refunds are limited to AED 10,000 per tourist per day.
There is no limit on refunds processed through credit or debit card.
If the total VAT refund amount exceeds the cash limit, the excess is refunded electronically.
The VAT refund must be processed within 90 days of the original purchase date.
The goods must be exported during the same period and verified by the system upon departure.
Failure to validate the purchase at the exit point before departure forfeits the tourist’s right to claim the refund.
Planet VAT Refund services are available at all major international gateways, including:
Dubai International Airport (DXB)
Abu Dhabi International Airport (AUH)
Sharjah International Airport (SHJ)
Al Maktoum International Airport (DWC)
Ras Al Khaimah, Fujairah, and other regional airports
Selected land border crossings and seaports
Refund kiosks are clearly marked and equipped for self-service with support available if needed.
To ensure a successful refund process, tourists should:
Retain all original receipts and tax invoices.
Ensure goods are unpacked and accessible for possible inspection.
Validate their claim before departure while still in possession of the goods.
Allow additional time at the airport to complete the process.
The VAT refund scheme for tourists in the UAE offers a practical financial benefit to international visitors and reflects the country’s commitment to enhancing the tourism experience. By following the prescribed steps and meeting the eligibility criteria, tourists can efficiently reclaim a portion of their expenses, making their visit more cost-effective.
At AM Audit, we specialize in providing expert guidance on UAE tax regulations, including VAT compliance, business registration, and advisory for international investors and visitors. For further assistance or tailored support, feel free to contact our team.
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