The UAE’s Federal Tax Authority (FTA) has reported a significant growth in the volume of transactions processed through the digital Value Added Tax (VAT) refund system for tourists in 2024.
The first half of the year saw 2.7 million transactions, up from 2.55 million during the same period in 2023. The figures are based on the number of “Tax-free Tag” refunds issued by retail stores electronically linked to the system.
The number of refunds translates to a daily average of around 15,000 transactions, compared to 14,180 in the same period of 2023, marking an increase of 5.62%.
The FTA also revealed a total of 19.67 million digital tax refund requests from tourists have been processed since the system’s launch, up to the end of the first half of 2024 (H1 2024). This is a notable increase from 14.54 million transactions by the end of H1 2023, a 35.25% rise over 12 months.
From June 30, 2023, to June 30, 2024, 5.13 million electronic tax refund requests from tourists were processed, averaging more than 14,000 transactions daily.
“The significant increase in tax refund requests from tourists can be attributed to the substantial tourism boom the UAE is currently enjoying, which reflects the wise leadership’s vision to expand diversification policies and strengthen various sectors’ role and position within the economic system, including the vital and promising tourism industry,” said Khalid Ali Al Bustani, Director-General of the FTA, said,
Al Bustani also highlighted the continuous upgrades to the digital tax refund system, which offers 100% digital procedures. The system processes digital invoices from registered retail outlets, replacing traditional paper invoices with an advanced electronic link.
The network of retail stores linked to the Tax Refund for Tourists Scheme expanded to over 16,870 stores by the end of H1 2024, up from nearly 15,610 by the end of H1 2023, an 8.07% increase. This growth has been steady over the past few years, with stores rising from 10,260 at the end of 2020 to 16,480 by the end of 2023.
