The UAE Federal Tax Authority introduced a VAT of 5% in January 2018, and will launch Tax Free Shopping in Q4 2018.
Tax Free shopping is the purchasing of goods in the UAE which will be exported (subject to terms and conditions) whereby shoppers can obtain a refund on the VAT on these items, providing that they validate their purchases according to local rules.
“Overseas tourist” means any natural Person who is not resident in any of the Implementing States and who is not a crew member on a flight or aircraft leaving an Implementing State. Therefore under the current rules, GCC Nationals are eligible.
Tax Free shopping will increase your share of
international traveller spend.
The tourist will receive 85% of the total VAT amount paid, minus an admin fee of 4.80 dirhams per Tax Free form.
There are no start-up, subscription or license fees, or upfront hardware costs. You will be invoiced monthly for the total VAT, and you can adjust your VAT return to effectively recover the VAT amount refunded. We will provide you with a smartphone with the app pre-loaded, QR code tags, Point of Sale material, and training for your staff.