Dubai is a global shopping paradise, attracting millions of tourists every year eager to indulge in the city’s luxury offerings and traditional souks. However, many visitors may not realize that a Value Added Tax (VAT) of 5 percent is applied to purchases across the UAE, including Dubai. The good news is tourists have the opportunity to reclaim VAT on eligible goods before leaving the country.
The UAE’s Federal Tax Authority (FTA) introduced the VAT in January 2018 and launched a 100 percent digital tax-free shopping service for tourists in the last quarter of 2018. Planet Tax Free is the only operator of the VAT refund system and most stores are registered in the UAE with the scheme, making it easy to secure your refund on departure by land, sea or air.
Understanding the VAT refund process can help travelers maximize their savings and enjoy tax-free shopping in Dubai. In this guide, we break down everything you need to know about VAT refunds in Dubai, from eligibility criteria to step-by-step claim procedures, ensuring a seamless shopping experience.
Who can claim a VAT refund in Dubai?
In Dubai, VAT refunds are not applicable on anything that has been consumed, fully or partially, as well as goods that are not accompanied by the tourist when leaving the country. You must visit the Planet counters when leaving the country to validate your transactions and complete the process. These counters can be found at all exit points across the country, including in airports, land borders and sea ports. You must leave the UAE within 90 days of when you made your purchases to claim your refund.
Only overseas tourists aged 18 and above are eligible for a VAT refund on eligible purchases made during their visit to the UAE. “Overseas tourist” means any natural person who is not resident in any of the Implementing States and is neither a crew member on a flight or aircraft leaving an Implementing State, nor a ship crew member.
How to shop tax-free in Dubai
After you have completed any purchase, confirm with the store if they are registered with Planet Tax Free if the store staff has not offered this service to you already. If the merchant is not registered with Planet, you will not be able to claim a VAT refund on your purchases.
Most brands and stores in Dubai offer VAT refunds. To ensure that you receive your refund, check the list of registered stores before shopping.
It is important to keep in mind that all goods that have a VAT amount are eligible for a VAT refund except:
- Perishable goods that have been consumed, fully or partly, in the UAE.
- Motor vehicles, boats and aircraft.
- Goods that are not accompanied by the overseas tourist at the time of leaving the UAE.
- Services.
- Goods that have been used, fully or partly, in the UAE and are not accompanied by the original packaging.
How to request a VAT refund at the store
If you have shopped at a store in Dubai that is VAT-refund registered, you must ensure that you are provided with a tax invoice that reflects your name (if applicable), as mentioned in your passport or GCC ID along with the Planet tax-free tag affixed to the back of the tax invoice. You will need to retain the original invoice and tax-free transaction because you will need it to complete your validation process when you leave the UAE.
If the merchant adopts a paperless method, the shop assistant will complete the sale and scan your passport or GCC National ID. Your tax-free transaction will be issued successfully once you have submitted your contact details to the shop assistant. Then, the digital invoice will be sent to you via email by the merchant. In this case, the physical tax invoice is not required to be presented at the validation point.
How to validate your tax-free purchases
Before you check in your luggage, take the goods and tagged tax invoices to one of Planet’s validation points. If you are using a self-service kiosk, scan your passport or enter your passport or national ID number manually. If you go to a manned validation desk, provide your passport or national identity card to the staff.
Follow the instructions on the screen if you are using a self-service kiosk, and if you get a green light, you’ve completed the validation process successfully. Once you have completed the validation process, you can choose your preferred refund method: credit/debit card, cash or digital wallet. Planet Tax Free will then process your refund request.
Once your transactions are issued, you have 90 days to validate your goods at the validation points from each respective tax invoice date at the time of your departure from the UAE. You must leave the UAE within 6 hours of completing the validation process.
Th refund will take around 9 days to be processed following your departure. You can track your tax-free shopping refund using the Shopper Portal app.
City Validation Kiosks
If you are exiting the UAE through an airport, you can initiate the VAT refund validation process of your purchases by using the City Validation Kiosk validation service located at leading malls and hotels across Dubai. To use this service, you must be departing the UAE within 24 hours and should have already obtained your valid online digital boarding pass.
To use a City Validation Kiosk:
- Scan your digital boarding pass and original travel document used to enter the UAE.
- Verify that your personal information reflected on the screen is accurate.
- Your existing tax-free transactions will be displayed on the screen and the kiosk will advise you on the next steps (For example, further inspection at the airport before check-in counters or proceeding to claim your refund.)
- If you select cash as your refund method, you will be required to visit one of Travelex’s counters after the security check. However, if you select card as your refund method, Planet will begin processing your refund claim upon your departure from the UAE.
Where to claim your VAT refund
You can visit validation points before you check in your luggage at most of the country’s exit points, including:
Airports
- Abu Dhabi Airport: Common area between all terminals
- Dubai Airport – Terminal 1 ,2 ,3, and 3 Business
- Al Maktoum Airport
- Sharjah Airport
- Al Ain Airport
- Ras Al Khaimah Airport
- Al Fujairah Airport
Land borders
- Al Ghuwaifat – At the border with Saudi Arabia
- Al Hili al Ain – At the border with Oman
- Al Madeef al Ain – At the border with Oman
- Hatta – At the border with Oman
- Khatmat Malaha – At the border with Oman
Seaports
- Port Zayed – Abu Dhabi
- Port Rashid – Dubai
- Port Khalid – Sharjah
Important VAT refund policies and limits
The minimum spend to be eligible for a VAT refund transaction in Dubai is AED250. You will receive 87 percent of the total VAT amount paid, minus a fee of AED4.80 per tax-free transaction.
If choosing a cash refund, the maximum refund amount is AED35,000 per tourist. If your refund amount exceeds AED35,000, you will have to provide a valid credit or debit card to ensure the refund is completed.
Troubleshooting common VAT refund issues
Planet’s system validates the status of each tourist’s passport or GCC ID with the UAE’s Immigration and Citizenship Agency to determine their eligibility. Therefore, you need to ensure that you provide the merchant with the same ID that was used to enter UAE.
If a merchant is unable to issue a tax-free transaction to you on account of a ‘Not eligible’ status, you will have to directly contact the Immigration and Citizenship Authority by visiting any of their offices to verify the accuracy of your record in their system.
If you are facing a delay in your refund or any other issues, you can contact Planet via email at tourists@planetpayment.com, or call their Customer Happiness Centre on +971 4 586 4700 from 9 AM to 12 AM (UAE time).
Read| Understanding TIN number in UAE: A guide to tax registration
Dubai VAT refund FAQs
How much VAT can I get refunded in Dubai?
You will receive 87 percent of the total VAT amount paid, minus a fee of AED4.80 per tax-free transaction.
Can I get a VAT refund if I paid with a credit card?
Yes, but you must ensure that you are provided with a tax invoice that reflects your name (if applicable), as mentioned in your passport or GCC ID along with the Planet tax-free tag affixed to the back of the tax invoice. You may also receive a digital invoice via email from the merchant.
Where can I validate my VAT refund at Dubai Airport?
You can validate your VAT refund at Terminal 1,2,3 and 3 Business at Dubai Airport.
How long does it take to receive my VAT refund?
The refund will take around 9 days to be processed following your departure.
Can I claim a VAT refund after I leave the UAE?
You cannot receive a VAT refund unless a tax-free transaction is issued by the retailer and is validated by Planet before departure. However, you can come back to UAE with the goods within 90 days from the date of purchase and approach the Planet team at the exit point to validate your goods.
