UAE. The world’s first fully digital VAT refund system has been launched in the UAE, and is being managed by international payments provider Planet.
The UAE introduced 5% VAT in January 2018 but visitors are now able to claim sales tax back on purchases made in the country (as of 18 November).
Planet (formerly Premier Tax Free) secured an exclusive three-year contract with the UAE Federal Tax Authority to manage the tourist VAT refund process.
The introduction of the refund system is part of a wider push to promote UAE tourism and its retail offering to global audiences.
The system involves quick and simple digital procedures through which VAT is refunded directly to tourists upon the presentation of invoices for purchases made in the UAE, according to Planet. The first phase of the roll out will see the service, with on-hand customer support, implemented at Abu Dhabi, Dubai and Sharjah international airports. As of mid-December, the system will be fully operational, including all airports and land and sea ports in the UAE.
“The new tax free system being implemented in the UAE is an ambitious move not only for the country, but for the wider tax free industry,” said Planet Director of Worldwide Partnerships & New Markets Gary Byrne.
“The end-to-end digital service is the first of its kind, and represents the future of tax free shopping. It is our ambition to bring this premium service to countries across the world as the tourism and retail industries – and consumers – become increasingly sophisticated.”
