The UAE implemented a 5% Value-Added Tax (VAT) in 2018, although visitors may still shop tax-free. VAT refunds are only available on items that you buy while visiting the UAE and plan to export.
What is Tax free Shopping? Tax-free shopping (TFS) is the practice of purchasing items outside of one's own nation or state while receiving a refund of the sales tax that the vendor has already taken from the purchase. Sales tax, goods and services tax (GST), value added tax (VAT), and consumption tax are all different terms for the same tax.
How to shop Tax Free in the UAE?
Follow these steps to do tax free shopping by VAT Refund for tourists and business visitors in the UAE
1. Request a VAT refund claim and present the travel document used to enter the UAE
2. The retailer will enter your information into our digital Tax-Free system to issue a VAT refund claim
3. The retailer will place a Tax-Free tag on the back of the original sales receipt. Make sure that the name on the sales receipt matches the name on your travel document used to enter the UAE
4. You must validate your claim at the Validation Point when leaving the UAE.
How much will you get back?
You will receive 85% of the total VAT amount paid, minus a fee of 4.80 dirhams per Tax Free tag
How to Validate your goods?
1. Go to Planet's Validation Point prior to checking in your luggage and approaching the Immigration counters
2. To be eligible for a VAT Refund you must have the original receipt (with Tax Free tag affixed to it), and present the purchased goods to the validation staff.
3. Once validated, please choose a refund method (Cash, Card, or WeChat Pay)
4. Planet processes your refund
If you do not leave the UAE within 6 hours of your validation process being complete, your refund will be canceled and you will have to restart the validation process.
How easy is it to issue Tax free tag?
1. The fully digital process allows the Tax-Free tag to be issued in as little as two minutes.
2. Minimum spend of AED 250
3. All fees are included and calculated at the point of sale and validation points
Refund Methods
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- Card Refunds
- Cash Refunds
A cash refund is subject to a maximum of AED 7,000. If your refund amount exceeds AED 7,000/-, your refund must be paid to a credit or debit card.
To simplify this process, you can rely on the top VAT Refund Services in UAE, i.e., BMS Auditing
