Can I Get VAT Refund on Online Purchase in Dubai?

By Anna Duncan

Can I Get VAT Refund on Online Purchase in Dubai?

If you have ever shopped online in Dubai, you might have wondered whether you can get a VAT refund on your purchases. Value Added Tax (VAT) was introduced in the UAE, including Dubai, in 2018.

It is a consumption tax levied on goods and services at a standard rate of 5%. While VAT is applicable to most purchases made within the UAE, getting a VAT refund on online purchases can be a bit more complicated.

Understanding VAT Refunds

In order to understand whether you can get a VAT refund on your online purchases in Dubai, it is important to know how VAT refunds generally work in the UAE. The Federal Tax Authority (FTA) oversees the implementation of VAT and its refund scheme.

VAT Refund Scheme:

  • The VAT refund scheme allows tourists and visitors to claim a refund for the VAT paid on eligible goods purchased within the UAE.
  • The scheme is primarily designed for visitors who are not residents of the UAE.
  • To be eligible for a VAT refund, you must meet certain criteria and follow specific procedures outlined by the FTA.

Applying for a VAT Refund

If you have made an online purchase in Dubai and want to apply for a VAT refund, here are some important points to consider:

1. Eligibility:

Tourist Status:

  • You must be a tourist visiting the UAE with a valid passport.

Non-Resident Status:

  • You should not be residing or working in the UAE.

2. Minimum Spend:

In order to claim a VAT refund, you must meet the minimum spend requirement. The current minimum spend is AED 250. This means that the total value of eligible purchases from a single retailer must be equal to or exceed AED 250.

3. Timelines:

The VAT refund application should be submitted within 90 days from the date of purchase. It is important to keep all original receipts as proof of your purchases.

4. Online Purchase Considerations:

E-commerce Retailers:

  • Not all e-commerce retailers in Dubai participate in the VAT refund scheme.
  • You should check whether the online retailer you are purchasing from offers VAT refunds, as it may vary from one retailer to another.

The Refund Process

If you meet all the eligibility criteria and have made eligible online purchases, you can proceed with the VAT refund process:

1. Obtain Tax Invoices:

Make sure to obtain tax invoices from the online retailer at the time of purchase. These invoices should clearly state that VAT has been charged on your purchases.

2. Validate Your Invoices:

You need to validate your tax invoices through electronic validation devices available at airports and other designated locations in Dubai. This step is necessary to ensure that your invoices meet all requirements for a VAT refund. Submit Your Application:

Your next step is to submit your VAT refund application along with all required documents (such as original receipts, passport copies, etc.) at designated refund points or kiosks within the UAE. Receive Your Refund:

Once your application is processed and approved by the FTA, you will receive your VAT refund through the selected refund method, which can be either cash or credited back to your credit card.

Conclusion

In conclusion, while it is possible to get a VAT refund on online purchases in Dubai, there are certain criteria and procedures that need to be followed. Ensure that you meet the eligibility requirements, keep all necessary documents, and validate your tax invoices to successfully claim your VAT refund.

Always check with the online retailer regarding their participation in the VAT refund scheme. Happy online shopping in Dubai!