News

UAE tourists to enjoy VAT refund

The UAE Cabinet announced on Wednesday, July 11, that UAE will have a refund of the five percent value added tax (VAT) they pay during their visit in the country.

With the refund system, which is expected to be implemented in the fourth quarter of the year, non-resident tourists may refund VAT on purchases made at participating retailers through designated refund outlets, provided that such goods are not exempt from the tax system.

The Cabinet said that the move was done to promote UAE’s tourism sector and to maintain its position as a global destination for tourists.

“The system will be implemented beginning the fourth quarter of 2018 in cooperation with an international specialised company in tax recovery services,” it added.

Saif Saeed Ghobash, Under-Secretary of the Department of Culture and Tourism (DCT) Abu Dhabi, welcomed the move which would encourage more tourists to visit UAE.

“The UAE in general, and Abu Dhabi specifically, will now have this added significant attraction to all types of tourists and business travellers, reinforcing the emirate’s position as a ‘go-to’ destination and further boosting potential visitor numbers,” Ghobash said.

“This new directive in is line with the UAE’s efforts to implement an efficient tax system in the emirates. It will directly support the growth of our tourism sector,” he added.

The refund would also help reduce accomodation costs for tourists in the UAE as municipality and tourism fees are reduced.

Source: WAM

Related Articles

Back to top button