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FTA Confirms an Advanced System for VAT Refund for Tourists
Dubai- April 1, 2022:
The Federal Tax Authority (FTA) confirmed that the VAT Refund Scheme for Tourists is witnessing continuous advancement and expansion. It has introduced more facilities to streamline and speed up the refund process for tourists eligible for a tax refund.
The authority noted that the system witnessed a significant increase in demand recently, as travel restrictions eased out. Mega event EXPO 2020 also helped the tourism sector in the UAE recover from the setback caused by the pandemic. The government’s efforts in supporting the travel industry was also another contributing factor.
The Refund Scheme for Tourists includes an integrated electronic system that creates a direct link between 13 air, land, and maritime entry/exit ports across UAE, with more than 13800 registered stores, allowing tourists to submit tax refund requests on their purchases. The system allows eligible tourists to reclaim the VAT incurred, provided they meet the specified criteria. The UAE is one of the first countries to implement such a Refund System characterized by the speed of completion, ease of procedures, and clarity.
During the Global Tourism Forum held at Expo 2020 Dubai, FTA in collaboration with its authorized operator (Planet) for VAT Refund Scheme – showcased the pandemic’s implications on shopping patterns and consumers’ behaviours along with economic indicators of recovery globally and locally. The event brought together representatives from many departments including the Department of Economic