The Federal Tax Authority (FTA) has unveiled the world's first VAT refund system for e-commerce purchases made by tourists during their stay in the UAE.
This pioneering initiative, launched in collaboration with Planet, the authorised operator for VAT refunds, marks a significant step in the UAE’s digital transformation and innovation efforts.
This new system allows tourists to recover VAT on purchases made through e-commerce platforms registered with the FTA, ensuring a seamless, paperless refund process. By simply scanning their passports and completing transactions, tourists can receive digital invoices automatically shared through a digital platform. These invoices can then be verified via a shoppers’ portal, offering a smooth and fast refund process.
Khalid Ali Al Bustani, Director-General of the FTA, expressed pride in the launch, emphasizing its role in enhancing the UAE’s status as a leading global tourist destination.
“This new achievement enhances the effectiveness of our digital VAT refund system, offering tourists a fast, efficient, and convenient experience,”
he said.
The VAT refund process is fully digital, with tourists able to apply for refunds directly through e-commerce platforms before their purchases are shipped. The registration process is completed once the tourist's identity is verified upon delivery or online order fulfillment.
This system builds on the success of the fully digital VAT refund platform launched over two years ago, reinforcing the UAE’s reputation for innovation and providing tourists with a streamlined shopping experience.
News Source: Emirates News Agency