Dubai Tax Refund for Tourists: VAT Refund Guide

Dubai is the heaven for the shopping lover because it is one of the main highlights when visiting Dubai, from luxury fashion and electronics to jewellery then cosmetics and souvenirs.

This is a good news for international tourists that an eligible tourists can claim a refund on the Value Added Tax or known as VAT paid on qualifying purchases before leaving UAE.

What Is the Dubai Tax Refund?

Dubai Tax Refund does not have a separate tourist tax refund system, hence it is called UAE Tourist VAT Refund Scheme operated by the Federal Tax Authority (FTA) together with Planet.

The standard rate of VAT in Dubai is 5% which eligible international tourists can get a refund on the VAT paid on qualifying goods that is purchased from retailers that participate in the Tourist Refund Scheme which the minimum eligible purchase amount is AED 250 per tax-free transaction.

But the tourists does not get a full amount of VAT because the service fees are deducted from the refund.

The refund is reduced by the applicable Planet service fees. The FTA currently lists a 13% deduction from the VAT amount being refunded plus AED 3.60 for each tax-free transaction.

For example, if you make an eligible purchase of AED 1,000 including 5% VAT, the VAT portion is approximately AED 47.62. Your actual refund will be lower after the applicable fees.

Your final refund amount can therefore vary depending on the purchase value and number of tax-free transactions.

Who Can Claim a Dubai VAT Refund?

What Can You Claim a VAT Refund On?

You can claim on eligible goods purchased from participating retailers that qualify for a tourist VAT refund :

• Clothing and fashion
• Shoes and accessories
• Electronics
• Jewellery
• Watches
• Cosmetics
• Souvenirs

How to Shop Tax-Free in Dubai

Travellers can look for the tax free sign at the shops before shopping, where the retailers participating in the UAE Tourist Refund Scheme.

At the participated store, the staff will tell you to claim a tourist VAT refund.

So, the retailer will use your passport or the relevant GCC national ID information to create the tax free transaction.

But it depends on the retailer, whether the transaction may be issued digitally or through another approved tax free process.

It is important to keep your passport, tax invoice, tax free transaction information or tag, purchased goods and payment records where applicable.

Remember to present the goods for inspection when vailidating the refund.

How to Claim Your Dubai Tax Refund at the Airport

Step 1: Keep Your Purchases

Keep your purchases before check in your luggage, because the VAT inspector may need to inspect the goods so do not keep them in checked baggage before completed the validation process.

Step 2: Find a Planet VAT Refund Point

At Dubai International Airport, Planet tax-refund validation facilities are available at the departure areas.

Validation also can be completed at the Planet self service kiosk or validation desks at UAE exit points.

If you use the self service kiosk, you should have a valid ticket or confirmed booking that shows the departure from UAE within 24 hours.

Step 3: Scan Passport

Tourists can use their original passport or the same GCC national ID used to enter the UAE.

Do remember that the copies are not accepted for validation process.

Step 4: Present Your Purchases if Requested

If the Planet staff require for inspection, you can show your purchased goods and relevant tax-free transaction information.

Step 5: Choose Refund Method

After validation is successful, you can select the refund method based on your preferences:

• Credit or debit card
• Cash
• Digital wallets such as WeChat Pay and Alipay

Step 6: Complete Refund Process

For cash refunds, the tourists may need to visit the participating cash partner after immigration, it will take a few minutes once processed.

While card refunds will be processed to the eligible payment card within 9 working days.

You can validate within 90 days from the date of tax invoice.

Dubai Tax Refund Tips

Shop at participating stores

Not every retailer participates in the Tourist Refund Scheme. Ask before making a large purchase.

Keep your receipts

Keep your tax invoices and tax-free transaction information until your refund has been successfully validated.

Do not pack your purchases too early

Planet staff may need to inspect the goods. Keep eligible purchases accessible until the validation process is complete.

Arrive at the airport early

Dubai International Airport can be busy, especially during peak travel periods. Allow extra time for check-in, security, immigration and the VAT refund process.

Use a card for larger refunds

Cash refunds are subject to a maximum of AED 35,000, while the FTA states that there is no limit on the refund amount claimed through a credit or debit card.

Check your refund status

Planet provides a Shopper Portal and mobile app for tracking tax-free transactions and refund information.

Dubai Tax Refund for Singapore Travellers

When Singaporean shopping in Dubai, the tax refund will be useful when buying the higher value items such as luxury fashion, watches, jewellery and electronics.

But before making a larger purchase, you must check the shop that participates in the Tourist Refund Scheme.

The process is practically straighforward but the most importantly, do not waiting last minute to validate at airport.