How much VAT do tourists get back in the UAE?
85% of the VAT paid, minus a per-tag fee of about AED 4.80 — roughly AED 37-38 back per AED 1,000 of pre-VAT spend.
Tourist Refund Scheme
The UAE Tourist VAT Refund Scheme: How Tax-Free Shopping Actually Works
The UAE refunds most of the VAT tourists pay on goods they take home — a scheme run digitally end to end by Planet under FTA rules. Understanding the mechanics matters to merchants as much as tourists: your counter starts a process the airport finishes.
- Scheme mechanics explained for your team
- Eligibility rules applied correctly at sale
- Refund maths transparent for customer questions
- Failed-validation issues traced and fixed
Dubai-based support for retailers joining the UAE tourist tax-free scheme.
Quick Answer
Overseas tourists aged 18+ (GCC residents included under conditions; UAE residents excluded) can claim refunds on goods bought from registered stores at AED 250+ per invoice. The tourist receives about 85% of the VAT paid, less a per-tag fee (around AED 4.80), after validating goods at the airport or exit point within 90 days of purchase. Refunds pay to card or in cash within limits.
85%Share of VAT refunded to tourists
AED 4.80Approximate per-tag fee deducted
90 daysWindow to export and validate
18+Minimum tourist age for claims
Who Qualifies — and Who Doesn't
The scheme targets genuine visitors exporting goods. Overseas tourists qualify; UAE residents do not, and airline crews on duty routes have their own exclusions. The goods must physically leave with the tourist — retailers issuing tags on obviously consumed items create validation failures the merchant hears about later.
- Eligible: overseas tourists 18+, visiting GCC nationals per rules
- Not eligible: UAE residents and departing residents' goods
- Goods must be exported unused within 90 days
- Excluded goods: consumed items, vehicles, boats, and similar categories
The Refund Maths
On a AED 1,050 purchase (AED 1,000 + AED 50 VAT), the tourist recovers 85% of the VAT — AED 42.50 — minus the tag fee, netting roughly AED 37-38. The remainder funds the scheme. For merchants the sale remains a normal taxable sale; the refund adjusts through scheme reporting, not your till.
- Refund = 85% of VAT paid, less ~AED 4.80 per tag
- Merchant's sale stays a standard 5% taxable sale
- Adjustments flow through scheme reporting to your VAT position
- Card refunds cover any amount; cash has daily caps
Validation: Where Refunds Succeed or Die
The airport step is the scheme's control: the tourist presents goods, passport and tags at validation points (staffed desks or self-service kiosks) before checking luggage. Missed validation, exceeded windows, or unavailable goods void the refund — and repeated patterns trace back to how the tag was issued at your counter.
- Validate before departure, goods available for inspection
- 90-day export window from purchase date
- High-value items may require physical inspection
- Merchant-side issuance errors surface as validation failures
Tourist VAT Refund Scheme UAE FAQs
What is the minimum purchase for a tourist refund?
AED 250 including VAT on a single tax invoice from a registered store.
Can UAE residents claim tourist refunds?
No — the scheme is for overseas tourists; residents are excluded even when travelling abroad.
How long do tourists have to claim?
Goods must be exported and tags validated within 90 days of purchase, at the airport or exit point before departure.
Does the refund cost the merchant anything?
The sale remains a normal taxable sale; merchant costs are the agreed per-tag fees and the minor counter workflow — typically repaid many times by higher tourist conversion.
Make the Scheme Work for Your Store
From registration to refund reconciliation, we set retailers up so tax-free selling is a sales tool — not a back-office mystery.
