UAE Unveils World’s First Digital VAT Refund System for E-Commerce Tourists

UAE, 18 December, 2024 : The Federal Tax Authority (FTA) has launched a groundbreaking VAT refund system for tourists shopping online in the UAE. This initiative, developed in collaboration with Planet, the authorized operator of the VAT refund system, is the first of its kind globally.

The new system aligns with the FTA’s vision of adopting innovative, digital solutions to enhance the UAE’s global competitiveness in tourism and e-commerce. Tourists can now recover VAT on eligible online purchases seamlessly during their stay, strengthening the country’s position as a top destination for international visitors.

According to the FTA, the system integrates e-commerce platforms and retailers registered with the Authority, enabling tourists to complete VAT refund procedures digitally. Purchases are recorded as digital invoices, which tourists can verify through a shopper portal, ensuring a paperless, user-friendly experience.

His Excellency Khalid Ali Al Bustani, Director General of the FTA, highlighted the system as a major milestone, offering tourists a smooth VAT recovery process for both in-store and e-commerce purchases. He added that this reflects the UAE’s leadership in innovation and its appeal as a global tourism hub.

Eyad Alkourdi, General Manager of Planet, praised the initiative for its simplicity and efficiency, emphasizing its role in enhancing the shopping experience for international visitors.

Tourists can register for VAT refunds directly via registered e-commerce platforms by providing travel documents and verifying their identity during delivery or order fulfillment. The system ensures compliance with tax laws while offering fast and effective VAT recovery.

This innovative service supports the UAE’s broader goals of boosting tourism and fostering growth in e-commerce and retail sectors.