The Federal Tax Authority (FTA) has introduced a digital solution for tourists to claim VAT refunds seamlessly. The new “Tourist Refund” app, unveiled at the ongoing Gitex Global exhibition, enables tourists to process VAT claims without the need for physical receipts.
Previously, tourists had to retain all their printed receipts to avail a refund. With the introduction of this app, merchants will simply scan the invoice when a purchase is made, and it will automatically record the transaction. Zahra Al Dahmani, director of the Taxpayer Services Department at FTA, stated, “The app will store information on each transaction and the associated VAT amount that can be reclaimed upon exiting the UAE.”
To claim their refund, tourists will approach designated counters at exit points like airports, presenting their digital invoices from the app. The refund can either be given in cash or credited to their card. Al Dahmani remarked, “This system will mitigate long waits in queues, thanks to its automation.”
Dubai’s tourism has surged recently, with 8.55 million international visitors marking a 20% growth in the first half of 2023 compared to the same period in 2022. This number surpasses even the pre-Covid figures from the first half of 2019.
Currently, the Tourist Refund app is available only on the Android platform, but an iOS version is anticipated by the year’s end.
The UAE introduced a 5% VAT on consumer goods in 2018. Tourists, however, have the provision to claim a refund upon their departure from the country.
Alongside the Tourist Refund app, the FTA is also spotlighting their new app on the Emaratax Platform, named “Maskani.” This application accelerates the refund process, slashing the waiting time from 20 working days to a mere five. Al Dahmani shared that the Maskani app offers an array of services to taxpayers, agents, and eligible UAE residents seeking construction-related refunds. Access to this app is available through the UAE Pass.
Al Dahmani concluded by encouraging companies to register promptly for the corporate tax introduced in June 2023, emphasizing the FTA’s need for adequate time to review applications.