UAE - VAT Refund for Tourists
As previously suggested, the UAE Cabinet has now formally approved plans to implement a VAT refund scheme for tourists.
The UAE Introduced the 5% VAT regime on 1 January 2018 and VAT is applicable across a range of goods and services. One of the consequences of the system is increased costs for tourists which is problematic as it is a hugely important econimoc sector.
Hoping to alleviate this is the new VAT refund scheme, which will be integrated between retail outlets with tax refund points. It will begin to be implemented nationwide from the fourth quarter of 2018, according to a statement from the government news agency. Non-residents will be able to refund VAT on purchases made at participating retailers, provided those goods are not VAT exempt from the tax system.
Should you require any VAT assistance in the UAE, or require any international VAT assistance, please contact us.