It has almost been a year since VAT came into effect in UAE. Even though the skepticism regarding its implementation persisted, retailers and customers eventually got accustomed to the new law, issued by the FTA Department.
Commencing from November 18 this year, various tourists who spend more than 250 Dirhams are eligible to collect refund on their respective purchases, within a span of 90 days.
By the end of this year, the digital system for Tax refund in this Tourists Scheme will entirely be implemented in all airports and sea and land ports in UAE.
Furthermore, it is noted that 4000 and more retailers in UAE will use this electronic systems. However, the following 4 conditions must be met by the retailers:
1. Registered with the FTA and have VAT TRN number
2. Sales of goods should be included
3. Request to participate in scheme must be submitted
4. Submit tax returns and pay outstanding taxes
The qualifying retailers can be spotted by the posters in front of the stores. Moreover, as UAE is considered to be a tourist destination, this refund system will contribute largely to attract a larger number of tourists. Furthermore, this will provide benefits to the registered retailers as they will gain a competitive edge in the market.