December 16, 2024, The Federal Tax Authority (FTA) announced the launch of a VAT refund system tailored for e-commerce retail purchases made by tourists visiting the UAE. This system stands as the first of its kind globally, marking a significant milestone in the realm of digital financial services. In a recent press release, the FTA detailed its collaboration with Planet, the authorized operator of the VAT refund program for tourists, to roll out this innovative system. This initiative is part of the FTA’s broader strategy to embrace proactive solutions that enhance digital transformation and creativity, aimed at meeting evolving market demands. By implementing such a forward-thinking strategy, the UAE reinforces its ambition to become the best government in the world and significantly boosts its digital competitiveness and innovation benchmarks on an international scale. These efforts further solidify the UAE’s leadership status across various sectors, notably tourism and e-commerce.
The FTA has developed plans to integrate e-commerce retailers and platforms registered with the Authority into the new “VAT Refund for Tourists on E-Commerce Purchases” system, simplifying the process for visitors during their stay in the UAE. This initiative builds on previous accomplishments, as the FTA had already established a fully digital VAT refund system for tourists over two years ago. This paperless platform allows visitors to scan their passports, complete transactions seamlessly, and instantly share their purchase details as digital invoices. Tourists can conveniently verify these invoices through the shoppers’ portal, ensuring a smooth shopping experience and expedited VAT refund processes for eligible purchases.
His Excellency Khalid Ali Al Bustani, Director General of the Federal Tax Authority, commented, “We take great pride in launching the world’s first electronic system that enables tourists to reclaim VAT on e-commerce purchases while in the UAE. This initiative reflects our ongoing commitment to developing innovative systems that establish global benchmarks.” He further emphasized, “This advancement enhances the efficacy of our pioneering VAT refund system, underscoring the UAE’s image as a premier international tourism destination. The country offers a safe environment, welcoming people, and a wealth of attractions and events. Our system has garnered high satisfaction ratings from tourists thanks to its straightforward and efficient processing for VAT refunds.”
Additionally, His Excellency highlighted, “The FTA is dedicated to providing a unique experience through the comprehensive ‘VAT Refund for Tourists on E-Commerce Purchases’ system, enabling visitors to recover VAT on all purchases—be it from traditional stores or registered e-commerce platforms. The entire refund process is conducted smoothly and efficiently from purchase to refund completion when the tourist departs the UAE. This invaluable service aims to enrich the tourism sector and stimulate growth for both e-commerce and traditional retail in the region.”
Eyad Alkourdi, General Manager of Planet, expressed pride in the collaboration, noting, “The FTA has effectively fulfilled its vision of creating an integrated VAT refund system for tourists. We are honored to manage this exceptional initiative, providing an exceptional and hassle-free shopping experience for international visitors.”
The FTA emphasized that the “VAT Refund for Tourists on E-Commerce Purchases” system is designed to be user-friendly and compliant with tax regulations. Tourists can easily apply for VAT refunds through registered e-commerce platforms before their purchases are dispatched. By providing their travel document details alongside relevant personal information, tourists can confirm their eligibility during the purchase process. The VAT refund registration is finalized when the tourist’s identity is verified during delivery or online order completion. This innovative system represents a significant leap forward in simplifying the shopping experience for tourists, enhancing their satisfaction while contributing to the robust growth of the UAE’s tourism and e-commerce landscapes.
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