If you are visiting the UAE, then you can take advantage of a number of financial rewards – one of them being a refund on your taxes!
As a tourist in this beautiful country, every penny matters and it’s important to know that by simply understanding the tax rules here some money could easily be saved.
In this blog post, we’ll explore how tourists can claim their tax refunds while touring around the UAE and enjoy the amazing attractions without breaking the bank.
Overview
The tax refund system in UAE is known as the Tax Refund for Tourists Scheme, which allows visitors to claim back their Value-Added Tax (VAT) on purchases made during their trip.
To be eligible for a tax refund, tourists must meet certain criteria: they must be non-residents and have purchased goods or services from a participating retailer. All purchases must be taken out of the UAE within 90 days of purchase and presented at the airport refund office before exiting the country.
The total amount to be reimbursed is calculated according to the amount charged for each item purchased, plus any related expenses such as shipping or other fees. Refunds are also available on services, such as hotel stays and car rentals.
Claiming Tax Refunds
When it comes to claiming the tax refund, there are a few steps involved.
First, tourists need to find out if the retailer they bought from participates in the Tax Refund for Tourists Scheme – many of the major malls and shopping centers do, so this shouldn’t be an issue.
Tourists will then need to complete the Tax Free Form available at each participating store, and ensure that all fields are correctly filled out before submitting it for validation.
Next, visitors must present their purchases and original receipts along with the validated Tax Free Form when departing from Abu Dhabi or Dubai International Airports – refunds can be claimed in either of these two airports.
Finally, travelers must go to the Customs Refund office located in each airport’s Departure Terminal and present their documents for final approval before leaving the UAE.
How To Enjoy VAT-Free Shopping In Dubai And The UAE
Step 1 – Request A VAT Refund From Eligible Merchants:
The first step to enjoying VAT-free shopping in Dubai is to ensure that you are purchasing from an eligible merchant. Some retailers have a special priority ‘Tax Free Shopping’ line so check with them before making your purchase.
You will then need to request a tax refund form and present it with all the necessary documents at the time of purchase.
Step 2 – Retailer Will Issue a VAT Refund Claim:
Once you have made your purchase, the retailer will issue a VAT refund claim form, which contains all relevant details of your purchase and must be signed by both you and the retailer.
The document should also include information on who is entitled to receive the tax refund, such as the name and address of the customer claiming the refund.
Step 3 – Receive Your Dubai Tax-Free Tag:
Once you have submitted your VAT refund claim form, you will receive a Dubai ‘Tax Free Shopping’ tag which is to be attached to your purchased items. This tag identifies that these goods are eligible for tax refunds in Dubai.
Step 4 – Validate Your Claim:
Once you have returned home, you must validate your claim by presenting the original receipt and VAT refund form at the Dubai Department of Tourism & Commerce Marketing (DTCM).
You can also use their online service to track the status of your claim. Once validated, you should receive your refund within 9 days.
What Are The Conditions For VAT Refund In Dubai And The UAE?
In Dubai and the UAE, there are certain conditions that must be met in order to receive a Value Added Tax (VAT) refund. The main condition is that you must have made a purchase of at least AED 250 or more from an authorized outlet registered with the Federal Tax Authority (FTA).
To qualify for VAT refunds, you must also have spent a minimum of AED 100 per store in a single day. Moreover, the goods that you are buying must be taken out of the country within 90 days from the date of purchase with valid proof of export.
To receive your VAT refund, you must fill out an application form at the point-of-sale or at the VAT Refund Office, which is located at Dubai International Airport. On the form, you must provide details about your purchases such as date of purchase, amount and type of goods purchased, etc.
Upon completion of the form and submission of valid proof of export documents such as flight tickets, you can collect your refund in cash or by credit transfer.
It is important to note that not all purchases qualify for a VAT refund in Dubai and the UAE. Goods such as food, drink, tobacco products, utility bills and services are generally excluded from VAT refunds. Additionally, goods purchased from duty-free outlets or with promotional offers do not qualify for VAT refunds.
How To Track My Tax Refund In UAE?
To begin with, it is important to note that tracking the tax refund system for tourists depends on where you are shopping. If you are shopping in a store that is registered with Dubai’s Federal Tax Authority, then the store keeps track of your tax refund and will provide you with a receipt.
On the other hand, if you are shopping online or at an unregistered store, then it is up to you to track your refund.
In order to keep track of your tax refund, you should always keep the receipt from your purchase on hand. The receipt should include details such as the date and time of purchase, the amount paid, and any information related to the VAT itself. If you are shopping online, then make sure you save a copy of the order confirmation page which will also contain all these details.
Once you have your relevant documents, you should log on to the Federal Tax Authority’s website and create an account. This account will be used for filing any tax refunds that are due to you and for tracking them as well.
From there, enter the details from your receipt or order confirmation page into the system, and it will calculate the amount of refund you are due. The system will then generate a tax refund voucher, which you can use to claim your money back at any registered store in Dubai.
Conclusion
Getting a VAT refund for tourists in Dubai and the UAE is relatively easy, as long as you meet all of the necessary conditions.
By ensuring that your purchases are made from an authorized outlet registered with the Federal Tax Authority and by keeping track of your receipts and other documents, you can easily claim back any money owed to you.
Just remember to validate your claims within 30 days, and you should receive your refund within that time frame. With the right knowledge and resources, getting a tax refund in Dubai and the UAE is simple and you can enjoy a VAT free shopping in Dubai.
