The Challenge
"My cousin is visiting Dubai next month and asked me whether she can get back the VAT she pays on her shopping before she flies home. As an accountant, I should know this cold, but tourist-facing VAT rules aren't something I deal with day-to-day for my business clients."
This question comes up often from clients whose customers are overseas visitors, and from business owners who simply want to advise family and friends correctly. The UAE’s tourist VAT refund system is a separate, dedicated scheme sitting alongside the standard 5% VAT regime, and it works quite differently from a normal business VAT reclaim. Getting the details right matters because refunds are time-limited, tied to specific retailers, and processed through a single official operator — get any of the mechanics wrong and the visitor simply loses the money.
Our Approach
- Yes, but only through the official scheme — Tourists can reclaim 5% VAT on eligible purchases made in the UAE, but only through the FTA-appointed operator Planet, not by claiming directly from the FTA or the retailer.
- Retailer and purchase conditions apply — Goods must be bought from a shop registered in the Tourist Refund Scheme (look for the "Tax Free" logo), the tourist must be 18+ and not UAE-resident, and goods must leave the UAE within 90 days of purchase, unused where required.
- Refund claimed at exit, not later — The claim is validated at the point of departure (airport, seaport or land border) using self-service kiosks or staffed counters, where the tagged receipt, passport, and purchased goods (for spot checks) are presented before check-in.
- Minimum spend applies — A minimum single-receipt spend threshold set by the scheme (currently AED 250) must be met for a purchase to qualify, and the retailer must tag the transaction in the Planet system at the till at the time of sale.
For our clients running retail businesses, we help register with the Tourist Refund Scheme, train till staff on tagging transactions correctly, and reconcile the VAT treatment of tax-free sales in quarterly returns so the refunded amounts are handled correctly on the business side.
The Result
A tourist who shops at a registered retailer, keeps receipts and passport ready, and validates the transaction at a self-service kiosk or refund counter before leaving the UAE typically receives the refund back onto a card or in cash (subject to caps) within minutes of processing. For business owners, correctly onboarding to the scheme means tax-free sales are properly excluded from the retailer’s own VAT liability once validated, keeping quarterly VAT returns accurate and audit-ready.
The Takeaway
"Tourists can reclaim UAE VAT, but only via the Planet Tax Free scheme at registered retailers, validated at the airport or border before departure — not through a direct FTA claim."
