How Tourists Can Get a VAT Refund in the UAE
The UAE havs transformed itself into a tourist spot. In the first half of 2018, Dubai itself has attracted more than 8.1 million tourists from every corner of the world. Visitors get fantasized with the tourist spots and are also driven by the craze of shopping in Dubai. As we all know, the Emirates are known for free zones and a free tax economy, the Emirati government has taken this to the next level where they have introduced VAT refund for the tourists. Let’s see why and how.
Visitors to the UAE
The Emirates has defined itself as a tourist destination and has outpaced other destinations at a faster pace. It attracts worldwide visitors that spend a huge amount on tourism. According to the Dubai Chamber of Commerce and Industry, the spending is expected to increase to 205.5 billion Dirhams by 2022. Since the tourism industry is booming, the Emirati government has taken an innovative step of refunding the VAT for the goods purchased. Why? Read below.
Visitors to the UAE Can Claim VAT Refund from Nov 18th 2018
The UAE Federal Tax Authority (FTA) has announced a tax refund schemes for tourists, wherein the tourist will possess the power to claim a VAT refund, if charged. According to the report, more than 4,000 retailers across the UAE will be connected with an electronic system to track the amount being charged from the visitors. The number is expected to rise by 6,000 by the end of this year, and by 10,000 by the end of next year. A maximum amount of Dh 10,000 could be claimed as cash return, whereas there exists no limit for the credit card. The implementation of this law can be seen at Abu Dhabi, Dubai, and Sharjah international airports, with an aim to cover all the airports by December 2018. The tourists will be able to claim back 85% VAT on their purchased goods.
