Applying VAT refund to tourists soon

Media In-Abu Dhabi, July 14, 2018

The Federal Tax Authority (FEA) has expected the entry into force of the VAT refund project to be implemented soon after it has reached its final stages of application readiness in line with international best practices.  The project will include integrated systems for direct connection to all outlets and shops. The executing company will coordinate among the registered retailers in the tax system at the Authority who wish to register for the system of tax refund for tourists and link with the ports of the country, enabling tourists to apply for tax refund on their purchases through a digital system Depends on the latest technology used in this field in preparation for its operation at the state level for those eligible to recover the tax according to the specified conditions and criteria. In a press release issued today, the Authority said that the decision of the Council of Ministers on the implementation of the tax refund system for tourists will enhance the UAE’s leading position and a major destination on the global tourism map. He also set clear criteria for transparency and accuracy of VAT procedures and mechanisms for non-UAE tourists Residents of the State. Khalid Ali al-Bustani, Director General of the Authority, said that the operator of the tax refund system for tourists to be contracted will be able to conclude agreements with retailers to equip them with the techniques of the system of reply and linkage with the regulations of the Federal Authority for Taxation, Airports, Land and Marine Passports. Taxes are easy. There must be a set of basic conditions for the tourist coming from outside the country to qualify for tax refund through the system in accordance with the decision of the Council of Ministers, including the supply of goods subject to the tax refund system for tourists to tourists coming from outside the state within the country when the purchase of goods from the supplier The date of supply The departure of the country within 90 days from the date of supply accompanied by the goods that he purchased and the related goods are exported by the tourist out of the country within 3 months from the date of supply. In accordance with the decision, the tax refund requires tourists to purchase goods from a retailer who has participated in the system and that the purchase process is carried out and that the goods are exported according to the requirements determined by a decision of the Chairman of the Authority.