According to a draft executive regulation published by the Federal Tax Authority (FTA) on Wednesday, Tourists those come for the purpose to visit UAE now will be capable to claim back VAT, expenses they accrued in visiting the country. So Now UAE tourist can claim VAT refund Dubai.
Finally the Tax Authority’s top official, Khalid Al Bustani said that tax refunds for tourists are expected to be finalised soon so UAE Tourists can Claim VAT. They told journalists on Wednesday that he expected a company to be selected soon to handle tourist refunds.
Al Bustani, who is director-general of the Federal Tax Authority (FTA), said “We have tendered for the selection of a tourist refund operator, and we are in the final stage. Now we are We are waiting for the final approvals in order to finalize the contract with the operator.”
Tourists visiting the UAE will be able to claim back value-added tax (VAT) on purchases (want to know how to claim? check this: URL ), shopping and many other things they make whilst on holiday in the country, They all will be happy with it.
According to the document released on FTA’s website, The Cabinet “may issue a decision introducing the Tax Refunds for Tourists Scheme”. There are some things relating to tax refunds will be mentioned: such as – Date on which the scheme will come into force, the compliances, rules of tax refunds, restrictions to claim tax refunds and some other details. Several countries which are implementing same tax reform also provide VAT refund to visitors.
“UAE Tourists will have to designate their prime mode of settlements at the time of purchase and the businessman will make this choice specified into the vat system. The UAE ports and customs department will verify the taxable supplies at the time of exit to confirm the refund applicability, and UAE launched the Tourist VAT refund” Chaturvedi said.
Useful Link: UAE Tourist Now Can Claim VAT Refund
Let us clear with an example, shoppers who come to visit the country but living outside EU, when they are going back to the home country they can ask for VAT refund at customs at the time of leaving the country
Whereas in the UK, in the process of VAT refund, the travelers will ask VAT 407 form from the retailers and they have to fill that form to claim VAT tax refunds. At the time of leaving the country, the visitors will be required to show the goods, completed form and receipts to customs at the airport. After then customs will cross-check their form if everything is appropriate they approve the form. After the approval of form, the visitor will be able to claim back the VAT, which is nearly 20 percent in the UK.
Managing partner of Chartered House, Anurag Chaturvedi said “Tourist VAT refund process is in a method with global best practices where UAE tourists will get the tax refund automatically credited to their bank account or credit card”.
To avail UAE Tax Refunds for Tourists Scheme, following conditions must be fulfilled:
- When the visitors are available in the country the goods should be provided to him/ her, at the time of purchase.
- The visitors must belong from outside Gulf Cooperation Council.
- The visitor must be leaving the country within 90 days of purchasing.
- It was also mentioned that the list of goods will be published by the cabinet including all those which will be non-eligible for the refunds.