The Federal Tax Authority (FTA) announced the launch of the world’s first VAT refund system for e-commerce retail purchases made by tourists during their stay in the UAE. The innovative system, unveiled on December 16, 2024, in collaboration with Planet, the authorised operator of the VAT refund system for tourists, is part of the FTA’s ongoing efforts to drive innovation and digital transformation in tax administration.
The new system integrates e-commerce platforms and retailers registered with the FTA, enabling tourists to claim VAT refunds on purchases made online while in the UAE. This builds on the success of the fully digital VAT refund system for tourists introduced two years ago, which eliminated paper-based procedures and simplified the refund process.
The platform allows tourists to scan their passports, complete transactions digitally, and share purchase details through electronic invoices. The process is fully automated, with tourists able to verify invoices via an online portal. Refunds are processed efficiently, offering a seamless and fast experience for eligible transactions.
“We are proud of the success of the Federal Tax Authority in launching the world’s first electronic system that enables tourists to recover VAT on their e-commerce purchases during their stay in the UAE,” said Khalid Ali Al Bustani, Director-General of the FTA. “This is part of the Authority’s ongoing efforts to develop its systems and provide innovative services that set global benchmarks.”
Al Bustani further noted that the system enhances the UAE’s reputation as a premier international tourism destination known for its safety, hospitality and diverse attractions. “The system has received high satisfaction and praise from tourists for its simplicity, efficiency and speed in processing VAT refunds for eligible tourists,” he said.
The FTA emphasised the system’s compliance with tax legislation, ensuring smooth and clear procedures for tourists. Refunds can be applied directly through registered e-commerce platforms, with tourists providing travel document details and personal information at the time of purchase. Registration is completed once the tourist’s identity is verified during delivery or order fulfilment.
The VAT refund system for tourists’ e-commerce purchases is expected to further streamline the shopping experience, boost tourist satisfaction, and reinforce the UAE’s position as a leader in digital tax administration and innovation.
