Under the new system, tourists can request VAT refunds directly through registered e-commerce platforms before their purchases are shipped. Getty Images
Under the new system, tourists can request VAT refunds directly through registered e-commerce platforms before their purchases are shipped. Getty Images
Under the new system, tourists can request VAT refunds directly through registered e-commerce platforms before their purchases are shipped. Getty Images
Under the new system, tourists can request VAT refunds directly through registered e-commerce platforms before their purchases are shipped. Getty Images

UAE to offer VAT refund to tourists for online purchases


Alkesh Sharma
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The UAE will now offer value-added tax refunds for e-commerce purchases made by tourists during their stay in the Emirates. The move aims to boost the country's position as a tourism and e-commerce hub, the Ministry of Finance’s Federal Tax Authority (FTA) said on Monday.

The FTA developed the initiative in partnership with Planet, the authorised operator of the VAT refund system for tourists in the UAE. Under the new system, tourists can request VAT refunds directly through registered e-commerce platforms by submitting their travel document details at the time of purchase, before their orders are shipped.

The VAT refund registration is completed once the tourist’s identity is verified during delivery or online order fulfilment, the FTA said. Khalid Al Bustani, FTA director general, said the system reflects the UAE’s push for digital transformation and strengthens its position as a tourism hub.

“The VAT refund procedures are processed smoothly, quickly, and efficiently, from the moment of purchase until the refund is completed when the tourist departs the country,” Mr Al Bustani said.

The FTA said the new system also ensures compliance with tax legislation. The UAE introduced a 5 per cent VAT on a majority of goods and services in January 2018 as part of its plans to diversify the economy and reduce its dependence on oil.

The VAT refund scheme for tourists has been available in the Emirates since November of the same year. Tourists who spend at least Dh250 ($68) on purchases can claim their VAT refunds at designated outlets before leaving the country.

In June 2019, Planet launched fully automated self-service kiosks across the country to provide tourists with a simple way to claim VAT refunds before departing the UAE. The UAE also introduced a paperless tax refund system in 2022 for tourists visiting the country, doing away with the need to retain receipts.

UAE's evolving tax landscape

The new system is part of a broader shift in the UAE’s tax landscape as the country introduces reforms to diversify its revenue sources and reduce reliance on hydrocarbons. The UAE implemented a federal corporate tax at a standard rate of 9 per cent, effective for financial years starting on or after June 1, 2023.

Last week, the country also announced that large multinational enterprises will be subject to a 15 per cent domestic minimum top-up tax on profits, up from the current 9 per cent, starting from financial years beginning on or after January 1, 2025.

The UAE is also considering new corporate tax incentives, including refundable tax credits of up to 50 per cent for research and development activities starting in 2026 and for high-value employment roles from January next year. These would be intended to boost innovation, attract top talent and enhance the country’s global economic competitiveness.

During the first three quarters of this year, the UAE government generated revenue of Dh272.6 billion from taxes, according to Ministry of Finance data.

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match info

Maratha Arabians 138-2

C Lynn 91*, A Lyth 20, B Laughlin 1-15

Team Abu Dhabi 114-3

L Wright 40*, L Malinga 0-13, M McClenaghan 1-17

Maratha Arabians won by 24 runs

Fighting with My Family

Director: Stephen Merchant 

Stars: Dwayne Johnson, Nick Frost, Lena Headey, Florence Pugh, Thomas Whilley, Tori Ellen Ross, Jack Lowden, Olivia Bernstone, Elroy Powell        

Four stars

Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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The biog

Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.

His advice to anyone starting out in business is to have no fear as life is about taking on challenges.

“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.

"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”

Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.

He relaxes by spending time with his family at home, and enjoying his wife’s India cooking. 

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'Avengers: Infinity War'
Dir: The Russo Brothers
Starring: Chris Evans, Chris Pratt, Tom Holland, Robert Downey Junior, Scarlett Johansson, Elizabeth Olsen
Four stars

Biog

Mr Kandhari is legally authorised to conduct marriages in the gurdwara

He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada

Father of two sons, grandfather of six

Plays golf once a week

Enjoys trying new holiday destinations with his wife and family

Walks for an hour every morning

Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

Updated: December 16, 2024, 3:01 PM