Federal Tax Authority launches the world’s first tax refund system for tourists on their purchases via e-commerce

The Federal Tax Authority launched the first system in the world to refund value-added tax to tourists on their purchases via e-commerce during their stay in the country.

The authority explained, in a statement today, that the launch of the new system in cooperation with “Planet”, the authorized operator for returning value-added tax for tourists, came within the framework of the authority’s plans to adopt proactive solutions within the innovation and digital transformation system, based on creativity factors to keep pace with the requirements of the future, in a way that enhances competitiveness. The country is committed to providing services and achieving its vision of being the best government in the world, as this important achievement contributes to improving the country’s digital competitiveness indicators and innovation performance indicators at the international level, supporting the UAE’s leadership in all sectors. Among them are the tourism sector and the e-commerce sector.

The authority indicated that it had developed, in cooperation with the approved operator, a plan to include the platforms and electronic stores registered with it in the “tax refund for tourists for their purchases via e-commerce” system during their presence in the country.

She stated that this step came as a continuation of what was achieved during the last period in this field, as the Authority launched more than two years ago the digital system for tax refunds for tourists, which relies on paperless procedures with fully digital mechanisms by 100% and witnesses continuous updating, and provides a digital platform that allows tourists with complete ease. Scan their passports and complete the purchase process, automatically share their transactions in the form of digital invoices, as well as verify their invoices through the shoppers portal for a seamless shopping experience with a refund of the paid tax. They can redeem their purchases through a fast and fully digital mechanism.

His Excellency Khaled Ali Al Bustani, Director General of the Federal Tax Authority, said that the launch of the first electronic system in the world that allows tourists to recover value-added tax on their purchases via e-commerce during their stay in the UAE, contributes to increasing the effectiveness of the important pioneering role played by the digital system for value-added tax refunds. Added to tourists as one of the mechanisms that reflects the sophisticated cultural face of the UAE, as it is one of the most important destinations on the international tourism map due to its safe environment and hospitable people, and the attractions it provides. It attracts various tourist activities and facilities, as the system enjoys high satisfaction rates and praise from the tourists who use it for its ease, effectiveness, and speed of tax refund procedures for tourists eligible for the refund.

He explained that the Federal Tax Authority provides a distinctive experience for customers through the “tax refund for tourists for their purchases via e-commerce” system, which is comprehensive, as it allows the tourist to recover the refundable tax paid for all his purchases during his stay in the UAE, whether he purchased from traditional stores. Or from the electronic platforms registered with the Authority, where tax refund procedures are processed simply, quickly and completely smoothly, starting from the purchase process until the tax refund is completed upon the tourist’s departure. The country, which contributes to enhancing tourism prosperity and developing both electronic and traditional Emirati trade.

The authority explained that the “tax refund system for tourists for their purchases via e-commerce” was designed with easy and clear procedures while ensuring compliance with tax legislation through precise procedures to verify the personality and identity of the tourist buyer who is legally eligible for a tax refund, noting that tourists in the UAE can submit tax refund requests. Added value directly through e-commerce platforms registered with the Authority before shipping their purchases, by providing details of travel documents and relevant personal information to verify their eligibility at the time of purchase, and the registration transaction is completed. To recover VAT once the tourist’s identity has been verified at the time of delivery/completion of the online order.