Are you planning to shop in Dubai and wondering about the VAT refund? Well, you’re in the right place! In this article, we will discuss everything you need to know about VAT refund in Dubai.
What is VAT?
VAT stands for Value Added Tax. It is a tax on the value added to goods and services at each stage of production and distribution. In other words, it is a consumption tax that is levied on the final price of goods and services.
VAT Refund in Dubai
As a tourist, you are entitled to claim a VAT refund on your purchases made in Dubai. The UAE government introduced the VAT refund scheme in November 2018 to boost tourism and attract more visitors to the country.
Eligibility Criteria
To be eligible for VAT refund, you must meet the following criteria:
- You must be a non-resident of the UAE
- You must be at least 18 years old
- You must have a valid passport
- You must have made purchases from retailers that are registered for VAT
- Your purchases must have been made within 90 days before your departure date
- Your purchases must not be exempt from VAT or zero-rated
How Much Is The Refund?
The amount of VAT refund depends on the total value of your purchases. You can claim a refund for purchases worth AED 250 or more (including VAT). The refund amount will be calculated as follows:
- 50% of the paid VAT for goods which have been subject to both 5% and 5% or 5% and zero-rate.
- 85% of the paid VAT for goods which have been subject to both 5% and standard-rate.
How to Claim VAT Refund?
To claim VAT refund, you must follow these steps:
- Make sure that the retailer is registered for VAT and provides a tax invoice for your purchases.
- At the airport, present your passport, tax invoices, and the goods purchased to the designated refund counter.
- The designated refund counter will verify your documents and process your refund request.
- You can choose to receive your refund in cash or through a credit card transaction.
In Conclusion
VAT refund in Dubai is a great incentive for tourists to shop and spend money in the country. As a tourist, it is important to know about the eligibility criteria, refund amount, and the process to claim VAT refund. By following these guidelines, you can enjoy tax-free shopping in Dubai!
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