After the implementation of its first consumption tax in the United Arab Emirates (UAE), the Federal Tax Authority (FTA) is continuing to make efforts to make compliance easy for businesses.
Most recent development, The UAE FTA has confirmed VAT Tourist Refund Scheme (TRS) wef 1st November 2018. FTA has selected “Planet” as its operator for TRS.
To qualify for a Tax Refund following conditions should be met:
Key Features of TRS:
Example, if a tourist buys gift items of AED 225 from a store and spends another AED 525 on buying electronics from another store, tourist is eligible to claim AED 25 of VAT paid on purchase of AED 525 only and not on the purchase of gift items of AED 225.
Refund of VAT on purchase of AED 525, tourist will get AED 16.45 as VAT refund under TRS.
More detail on TRS can be accessed through https://www.tax.gov.ae/pdf/Cabinet-Decision-No-(41)-of-2018-on-Tax-Refunds-for-Tourist-Scheme.pdf
The above information was kindly provided by Manoj. If you need any further information you can contact Manoj, email to: firstname.lastname@example.org.
MANOJ AGARWAL, CA, AFA (UK), MIPA (Australia), AAIA (UK), AFTA (UK) Tax & Commercial Professional, He is a writer, thinker and prominent speaker on Indirect Taxes and participated in various workshops and training sessions on UAE & GCC VAT. He is actively writing blogs, articles and eBooks on the UAE VAT Laws, Tax Procedures & Regulations etc. He is currently working as DGM – Finance with Dabur International Limited, Dubai, UAE.
Disclaimer: The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.