KHALEEJ TIMES, Wednesday, Sep 14, 2022 | Safar 18, 1444
UAE announces world’s first paperless tax refund experience for tourists
Emirates:
The UAE on Wednesday announced the world’s first paperless tax refund
experience for tourists.
Khalid Ali Al Bustani, director-general of the Federal Tax Authority (FTA), said
the system has been linked with the retailers hence all the receipts will be
generated electronically and tourists will not have to carry papers and receipts
of their purchases when going to airports to claim VAT refunds.
This was announced at a press conference which was attended by senior officials
of the Federal Tax Authority, Planet Tax, Seddiqi Holding, Rasool Khoory, GMG
and Apparel.
The UAE introduced a five per cent value-added tax (VAT) in 2018 and tourists in
the country can claim a VAT refund on the purchases made at the outlets upon
leaving the country.
“The biggest challenge for tourists was to carry a lot of papers to claim the
refund. When tourists make purchases, they have a printed invoice with a sticker
which shows the reference number of the tourist refund code. When they come to
the airport for an audit, they will check the paperwork. This is a lengthy
process. Hence, we worked with Planet to ensure that data must be ready before
the tourist arrives at the airport,’ said Al Al Bustani.
He said the UAE is the first in the world to achieve this milestone.
Al Bustani added that tourists don’t need to worry about carrying the paper and
stickers to claim VAT refund after the linking all the partners electronically.
“The efficiency of the process is very quick and tourists can always check about
their refunds amounts on the Planet portal once the invoice is posted. This
service has been activated and will 95 per cent of merchants in the first year,”
he said.