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“Federal Taxation”: Complete preparations for the launch of the second phase of the system of “value added” for tourists next Sunday

Media In – Abu Dhabi – 12 December 2018

The Federal Tax Authority has confirmed the completion of all preparations by the system operator to launch the second phase of the electronic system to refund the value added tax for tourists as of next Sunday, corresponding to the sixteenth of December this year to include the system 12 air, sea and land ports in order to complete the first phase, Including the airports of Abu Dhabi, Dubai and Sharjah International.
The second stage of the electronic system, which is equipped to deal with qualified tourists to recover the tax paid for their purchases, includes Al Ain, Al Maktoum, Ras Al Khaimah, Mina Zayed and Port Rashid Airports in Abu Dhabi and Dubai. , The Heili outlet and the host port in Al Ain, and the Hatta outlet in Dubai.
Khalid Ali al-Bustani, Director General of the Federal Tax Authority, said that the base of subscribers to the system is expanding exponentially, noting that by operating the second phase, the system will expand to include 12 air, sea and land ports used by tourists, namely 6 airports, 2 seaports and 4 land ports.
He added: “The Commission in coordination with the company” Planet “all the necessary tests to ensure that the system works efficiently and accurately at airports and land ports and sea ports covered by the system.
He stressed that the application of the system contributes effectively to increase the attractiveness of tourism and encourage internal trade and establish the status of the state as a central trading center in the region.
The decree of the Council of Ministers No. 41 of 2018 concerning the application of the value added tax refund system for tourists and the decisions of the Federal Tax Authority No. (1) of 2018 regarding the requirements of participation of the retailer in the system and No. (2) of 2018 regarding the value tax refund system Added to tourists clear criteria of transparency and accuracy of the procedures and mechanisms of tax refund for tourists from outside the country, which strengthens the leading position of the UAE as a major destination on the global tourism map.
The system includes integrated mechanisms to connect directly with the retail stores registered with the Authority wishing to register the system of tax refund for tourists and linking with the ports of the country, allowing tourists to apply for tax refund on their purchases through the system, which is based on the latest technology, for those eligible to recover the tax in accordance with the terms and criteria specified in the resolution Council of Ministers and decisions of the Commission.
The Federal Tax Authority confirmed that refundable tax invoices for tourists are only invoices issued by registered retail outlets associated with the system, which are announced by placing posters in clear places on their faces to be known to tourists.
She pointed out that one of the prerequisites for a tourist to qualify for tax refund through the system is that the age of the tourist is not less than 18 years and that the criteria specified in this regard shall be met in the Council of Ministers’ Resolution No. 52 of 2018 on the executive regulations of Federal Law No. 8, For the year 2017 on value added tax, which states that the goods subject to the tax refund system must be supplied to tourists to a tourist coming from outside the country within the country when purchasing the goods from the supplier and that the destination of the tourist at the date of supply is to leave the country within 90 days from the date of supply accompanied by With the goods he bought and sold Export the related goods by the tourist outside the country within 3 months from the date of supply.

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