Arab News, Thursday, Sep 15, 2022 | Safar 19, 1444
UAE introduces world’s first paperless tax refund system for tourists
Emirates:
The UAE’s Federal Tax Authority on
Wednesday announced the world’s first paperless tax refund scheme for tourists.
During a press conference, Khalid Ali Al-Bustani,
director general of the Federal Tax Authority, said the new paperless system has
been now linked with retailers, which will make receipts available
electronically.
Tourists can use these electronically generated
receipts to claim value-added tax refunds without carrying paper receipts, the
local media reported.
The UAE introduced a VAT of 5 percent in 2018, and
all tourists who spend $68 on purchases can claim VAT refunds at the outlets
while leaving the country.
The UAE authorities have also equipped several
kiosks to avail of the tax refund, reports in the local media said.
Al-Bustani said: “We worked with our partner
Planet Tax to ensure that data is ready before a tourist arrives at the airport
and can collect the refund.”
According to the local media, retailers in the
country are linked with FTA and Planet Tax systems, and tourists can generate
all the details regarding the VAT refund by visiting the Planet Tax website.
The tax official said the process is “very quick”
and tourists “can always check about their refund amounts on the Planet portal
once the invoice is posted. This service has been activated now and 95 percent
of merchants will be covered under this scheme in the first year.”