Maximizing Savings: Tax-Free Shopping in Dubai Explained
Dubai is a very popular tourist destination that is known for its prevalent nightlife, extravagant views, luxury shopping and mouth watering eateries. Today, Dubai has become a household name and is the first option for every holiday trip ever. People from all over the world come to Dubai to fulfill their shopping needs - it is truly a shopping paradise for shopaholics. From luxury shopping to affordable buys, this city offers endless opportunities to shop. Be it gold, clothes, electronics, beauty and accessories or souvenirs , Dubai has it all that too at the best prices.
The absolute best part about shopping in Dubai as a tourist is that you can claim a refund on the tax you pay along with your purchase. Imagine buying a luxury item and getting some of your money back - sounds too good to be true right?!
Learn more about tax-free shopping in Dubai, here’s a complete guide to all you need to know about Tax-free shopping in Dubai.
What is the Tax Refund system for tourists?
The UAE introduced a value-added tax (VAT) of 5% in 2018, along with which they also launched a ‘tax refund for tourist’ scheme that enables tourists to enjoy tax refunds in Dubai and across UAE. PlanetPayment is the exclusive operator, the VAT Refund Scheme for Tourists is a fully integrated electronic system connected with popular retail outlets that registered with the VAT Refund Scheme. In addition, the system is closely linked with 13 air, land, and sea entry and exit points around the UAE, allowing eligible consumers to obtain tax refunds before to departure. The best part is that travelers can use Self-Service Kiosks to complete tax refund procedures automatically, making the process simple and dependable.
What conditions need to be met in order to get a VAT refund in Dubai?
Before you can genuinely enjoy VAT-free shopping in Dubai, there are certain conditions you need to meet to be eligible for a tax refund in Dubai. Here are the conditions set out by the Federal Tax Authorities of UAE that will allow you to enjoy Tax Free shopping in Dubai:
- Refunds for VAT are only available on goods purchased during your stay in the UAE that will be exported.
- It is not applicable on anything that has been consumed either fully or partly in the UAE, as well as goods that are not accompanied by you when leaving the country.
- The retailer you purchase your goods from must be registered with the ‘Tax Refund for Tourists Scheme’
- The goods you purchased must not be excluded from the scheme.
- You must leave the country 9 days after making a purchase and getting back your tax refund
Where Are The VAT Refund Validation Points located?
Validation points can be found near most entry and departure points in the UAE. Also, look for a green stand with a lit-up sign that says "VAT Refund."
Airports - Planet’s validation points are available at Dubai International Airport - Terminal 1, 2 and 3 and Al Maktoum Airport
Sea Ports - You can also find a validation point at the Port Rashid Dubai.
Land Borders - There are validation points for tax-refund in Dubai across all the entry and exit points by land. These include - Al Ghuwaifat (at the border with Saudi Arabia) , Al Hili al-Ain(at the border with Oman, Al Madeef al-Ain(a the border with Oman, Hatta (at the border with Oman and Khatmat Malaha (at the border with Oman)
You can also find Planet’s self self-service kiosks available at Dubai Mall, with more locations popping up across the city.
How to enjoy tax-free shopping in Dubai?
There are 2 things you should know before starting the tax-refund process:
- The process is 100% digital
- You need to spend a minimum of 250 Dirhams
1. Request a VAT refund claim for your shopping from an eligible merchant registered with Planet. There are around 13,800 retailers that provide tax refunds in Dubai and around the UAE. After making a purchase, request a VAT refund claim from the merchant by providing your valid passport (or relevant travel document).
2. Retailer Will then Issue a VAT Refund Claim. After you provide your valid passport, the merchant will enter your information into Planet's' ‘Dubai Tax-Free System’’ which will print out a QR code sticker. The retailer will enter your information into our digital Tax Free system to issue a VAT refund claim
3. You will then get your Dubai Tax-Free Tag. The store will apply the QR code sticker on the back of the original purchase receipt once it has been produced. Before leaving the store, double-check that the name on your Dubai Tax-Free Tag matches the name on your passport. If there are any spelling errors, your tax refund in Dubai will be denied. Make sure the Tag is on the back of your invoice and that the Planet logo and Tax Free tag number are on the front.
4. Validate your Claim. After making your purchases and receiving your Dubai Tax-Free Tag, you need to validate your claim at a validation point before leaving the UAE.
How much money will you get back?
You will receive 85% of the total VAT paid, minus a 4.80 dirham cost per Tax Free sticker.
How To Validate Your VAT Refund Claim?
1. Go to Planet's Validation Points that are located through the airport prior to checking in your luggage and approaching the Immigration counters.
2. Present the original receipt with Tax Free tag attached to it, and the purchased goods to the Validation staff.
3. Once validated, you can then choose your preferred VAT refund method. Currently there are 4 refund methods - Credit Card, Debit Card, Cash and digital wallet methods.*
4. Planet will then process your refund. Only validate your VAT refund when you're ready to leave the UAE. You must leave the UAE 6 hours after validating your goods. If you don't depart within 6 hours, your refund will be canceled, and you'll need to restart the validation process.
*Please keep in mind that the maximum reimbursement amount is AED 7,000 per tourist. As a result, if your purchase exceeds the maximum amount, you must select an alternative VAT refund option.
How To Get A Tax Refund In Dubai Using The Self-Refund System?
If you prefer online operations, you can claim your tax refund through the Self-Refund online system.
- Open the QR code scanner on your smartphone.
- Scan the Tax-Free Tag's QR code.
- After scanning the QR code, open the URL on your phone's web browser.
- Enter your passport number
- To complete the VAT refund transaction, provide your 16-digit card number and expiration date.
By following the self refund system you wont need to go to the validation points in the city or wait till you get to the airport to complete your validation process.
How To Track My Tax Refund In Dubai?
After submitting a claim for your recent VAT-free shopping in Dubai, you have the option to track your tax refund. Scan the Tax-Free Tag QR code and go to the URL provided.
You'll get one of the following refund statuses after clicking the URL:
- Issued: Your Tax-Free Dubai Tag has been issued, but you have not yet validated your goods before leaving.
- Export Validated: You completed the validation process, and your refund is ready to be collected if you selected "cash" as your refund option, or it can be claimed by changing your refund method to card.
- Waiting for Goods Validation: Before your VAT refund can be issued, the team at the validation checkpoint needs to inspect your goods. A refund cannot be processed without this.
- Payment in Progress: Your VAT refund is being processed and will be sent to your debit or credit card within nine days from the date of validation. The refund could take up to three weeks to arrive on your card statement, depending on the card provider you are using.
- Paid: Your refund has been processed to your card, or paid to you in cash if you chose that option after validation
- Canceled: Your Tax Free Tag has been canceled, which could be due to a number of reasons. Contact Customer Services at Planet if you have any queries
- Declined: Your Tax Free Tag has been declined after inspection, which could be due to a number of reasons. In case your VAT refund has been declined, contact customer services.
- Blocked: The payment could not be processed, and additional information is required for the VAT refund. You can contact customer services if your VAT refund is blocked.
Who Is Eligible For VAT Refunds?
If you are an international visitor (18 years or older) who purchased qualified goods from registered merchants, you are eligible for a VAT Refund in Dubai and throughout the UAE. If you do not hold residency in any of the Emirates of UAE, you are considered a "overseas tourist."
VAT refunds are not offered to crew members on a flight, aircraft, or ship.