The UAE’s Federal Tax Authority (FTA) announced on Monday, October 22, that the Tax Refund for Tourists Scheme, which will enable tourists to refund VAT on purchases made at participating retailers through designated refund outlets, is set to begin on November 18.
With the refund system, 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, reported Khaleej Times.
More than 4,000 retail outlets in the UAE are registered under the refund scheme. Eligible outlets have posters displayed in their storefronts for tourists to see that they will receive a tax refund if they make purchases in their stores.
Earlier, 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.
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.
The refund would also help reduce accomodation costs for tourists in the UAE as municipality and tourism fees are reduced.
