As a tourist in Dubai, you’re entitled to claim a refund on the Value Added Tax (VAT) you pay on purchases during your visit. With VAT set at 5% in the UAE, getting a refund can help you save money on your shopping. The process is simple and convenient, especially at Dubai’s airports. Here’s how to get your VAT refund when departing from Dubai, ensuring you leave the city with some extra cash in your pocket.
1. Who is Eligible for a VAT Refund in Dubai?
Tourists visiting Dubai are eligible for VAT refunds on purchases made during their stay, provided they meet the following conditions:
- Non-UAE Resident: You must be a non-UAE resident and not holding any form of employment in the UAE.
- Minimum Purchase Amount: Your purchases must meet the minimum spend of AED 250 per receipt to be eligible for a VAT refund.
- VAT Refund Partner Stores: You must have made purchases from retailers that are registered with the “Tax Refund for Tourists Scheme”, which is operated by Planet, the UAE’s VAT refund operator.
Pro Tip: Look for stores displaying the “Tax-Free” sign. These retailers are partnered with the VAT refund scheme, allowing you to claim VAT back on your purchases.
2. How to Shop Tax-Free in Dubai
To ensure you can claim your VAT refund, follow these steps while shopping:
- Ask for a Tax-Free Tag: When making a purchase, ask the cashier for a tax-free tag or receipt. The retailer will provide you with an electronic VAT refund form linked to your purchase.
- Keep Your Receipts: Keep all VAT refund-eligible receipts, as you will need them when you apply for your refund at the airport.
Pro Tip: Double-check that the tax-free form or tag is correctly attached to your receipt before leaving the store to avoid any issues at the airport.
3. Where to Claim Your VAT Refund at Dubai Airports
You can claim your VAT refund at both Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). Refund counters are conveniently located in departure terminals, making it easy to complete the process before you board your flight.
- VAT Refund Counters:
Look for Planet VAT Refund kiosks or counters located before security (if you need to show your goods) and after security (for quick refunds). These counters are available in all departure terminals of Dubai’s airports.
4. How to Process Your VAT Refund
Once you’ve arrived at the airport, follow these steps to process your VAT refund:
Step 1: Validate Your Purchases
- Head to a Planet VAT Refund counter before you check in for your flight. Here, you will need to validate your purchases.
- Present Your Goods: In some cases, you may need to show the actual goods you purchased, so keep them accessible in your carry-on luggage until you’ve completed the refund process.
- Show Your Passport and Receipts: Provide the staff with your passport, boarding pass, and the receipts with the tax-free tags.
- Electronic Validation: The Planet VAT system will electronically validate your purchases and confirm the eligible VAT refund.
Pro Tip: Plan for extra time at the airport to complete the VAT refund process, especially if you have multiple receipts to validate or if the airport is busy.
Step 2: Choose Your Refund Method
Once your purchases have been validated, you can choose how you’d like to receive your VAT refund:
- Cash Refund: You can receive your refund in cash, but note that there’s a cap of AED 10,000 for cash refunds.
- Credit Card Refund: Alternatively, you can choose to have the refund credited to your credit or debit card. This is a convenient option if you don’t want to carry cash, but it may take a few days for the funds to appear in your account.
- Bank Transfer or Other Options: Some travelers may opt for refunds via bank transfer or other methods offered by the VAT refund provider.
Pro Tip: Opt for a credit card refund if you’re claiming a larger amount, as it may take longer to process large cash refunds at the airport.
5. How Much VAT Can You Claim Back?
You can claim a refund of up to 85% of the total VAT paid on eligible purchases. The remaining 15% is deducted as an administrative fee by Planet, the VAT refund operator.
- Example: If you spent AED 1,000 on eligible purchases, with AED 50 in VAT, you can claim back AED 42.50 (85% of AED 50) as your refund.
6. Key Points to Remember
- Timing Matters: You must apply for your VAT refund within 90 days of making the purchase. Ensure you claim your refund before departing Dubai to avoid missing out.
- Keep Your Passport and Boarding Pass Handy: You will need your passport and boarding pass to process your VAT refund, so make sure you have them with you at the VAT refund counter.
- Show Your Goods (If Required): Some purchases, especially high-value items like electronics or luxury goods, may need to be presented at the counter for validation. Keep these items easily accessible.
7. Can You Get a VAT Refund on Services?
VAT refunds are typically only available for physical goods purchased in the UAE. Services such as hotel stays, dining, and transportation are generally not eligible for VAT refunds. However, goods purchased for personal use and intended to be exported from the UAE are eligible.
8. VAT Refund for Online Purchases
If you purchase goods from an online retailer in Dubai while visiting and the store participates in the VAT refund scheme, you may also be eligible for a VAT refund. However, the goods must be exported from the UAE, and you’ll need to follow the same process as for in-store purchases, including validating your receipts at the airport.
Conclusion: Make the Most of Your VAT Refund with DXB Buggies
If you’re visiting Dubai for shopping, taking advantage of the VAT refund scheme is a smart way to save on your purchases. With just a little planning and preparation, you can claim your VAT refund quickly and easily at Dubai’s airports. And while you’re exploring Dubai, be sure to book from DXB Buggies desert adventure for an unforgettable experience in the stunning desert landscape!
