Tourists in Dubai will now get ‘world-first’ tax refund on online shopping

Tourists visiting the UAE can now claim refunds on the Value Added Tax (VAT) they paid for e-commerce retail purchases made during their stay.

The system, launched by the Federal Tax Authority (FTA), is the first of its kind in the world and is completely paperless. It allows tourists to recover VAT on purchases made from both traditional stores and e-commerce platforms registered with the FTA.

Developed in collaboration with the authorized operator Planet, the system lets tourists easily scan their passports, complete purchase transactions, and automatically generate digital invoices.

Tourists can apply for VAT refunds directly on e-commerce platforms before their purchases are shipped. The process requires verification of the tourist’s identity using travel documents at the time of purchase and again during delivery or order fulfillment.

“We are proud of the success of the Federal Tax Authority in launching the world’s first electronic system that enables tourists to recover VAT on their e-commerce purchases during their stay in the UAE,” said Khalid Ali Al Bustani, Director-General of the FTA. “This is part of the Authority's ongoing efforts to develop its systems and provide innovative services that set global benchmarks."