The Federal Tax Authority (FTA) has announced a significant rise in digital VAT refund transactions for tourists, with 2.7 million requests processed in the first half of 2024.
This represents an increase from 2.55 million requests during the same period in 2023, reflecting a 5.62% growth.
The FTA attributes this boost to the UAE's flourishing tourism sector and advancements in the digital tax refund system. In a recent press statement, Khalid Ali Al Bustani, Director-General of the FTA, highlighted that the system’s enhancements—such as electronic invoicing and integrated verification—are key drivers behind the increase.
From the system’s launch through June 2024, a total of 19.67 million digital tax refund requests have been processed, up 35.25% from 14.54 million in the previous year. The daily average of processed transactions has risen to approximately 15,000, compared to 14,180 in 2023.
The expansion of the retail network and self-service kiosks has further facilitated this growth. By the end of H1 2024, over 16,870 stores were linked to the tax refund scheme, an 8.07% increase from the previous year. Additionally, the number of self-service kiosks has grown by 20.25% to 95, enhancing accessibility for tourists.
Al Bustani praised the UAE’s digital transformation efforts, noting the aim to deliver advanced, paperless tax services and support government initiatives like the Zero Government Bureaucracy Programme. The FTA continues to work towards elevating UAE government services to a global benchmark of efficiency.
The increased use of kiosks and the broader retail network underline the FTA’s commitment to enhancing the visitor experience and streamlining tax refund processes, reinforcing the UAE's position as a top destination for tourists.
News Source: Emirates News Agency
