Khalid Al Bustani: The Authority’s continuous efforts to provide innovative services to continuously improve the country’s digital competitiveness indicators

United Arab Emirates: The Federal Tax Authority (FTA) announced the launch of a new VAT refund system for E-Commerce Retail Purchases for tourists during their stay in the UAE, which is considered the world’s first of its kind.

In a press release issued today, the FTA explained that the launch of this new system, in collaboration with Planet, the authorized operator of the VAT refund system for tourists, aligns with the FTA's plans to adopt proactive solutions within the framework of innovation and digital transformation. These plans are driven by creativity to meet future demands, enhancing the UAE's competitiveness in providing services and achieving its vision of being the best government in the world. This significant achievement contributes to improving the country’s digital competitiveness and innovation performance indicators globally, supporting the UAE’s leadership in all sectors, including tourism and e-commerce.

The statement also noted that the FTA, in collaboration with the authorized operator, has developed a plan to include platforms and e-commerce retailers registered with the Authority in the “VAT Refund for Tourists on E-Commerce Purchases” system during their stay in the UAE.

The FTA further explained that this step builds upon achievements made in this field over the past years, as the Authority had launched more than two years ago a fully digital VAT refund system for tourists. This system is entirely paperless and continuously updated, offering a digital platform that allows tourists to easily scan their passports, complete purchase transactions, and automatically share them in the form of digital invoices. Tourists can also verify their invoices via the shoppers’ portal, providing a seamless shopping experience with fast and fully digital VAT refund procedures for eligible purchases.

His Excellency Khalid Ali Al Bustani, Director General of the Federal Tax Authority, stated: "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. This is part of the Authority’s ongoing efforts to develop its systems and provide innovative services that set global benchmarks.”

He added: "This new achievement enhances the effectiveness of the pioneering digital VAT refund system for tourists, serving as one of the mechanisms that reflect the UAE’s sophisticated image as a top international tourism destination. The country is distinguished by its safe environment, hospitable people, and diverse attractions, events, and tourist facilities. The system has received high satisfaction and praise from tourists for its simplicity, efficiency, and speed in processing VAT refunds for eligible tourists.”

His Excellency further explained: "The Federal Tax Authority provides a unique experience for users through the comprehensive 'VAT Refund for Tourists on E-Commerce Purchases' system. It allows tourists to recover refundable VAT on all their purchases during their stay in the UAE, whether from traditional stores or e-commerce platforms registered with the Authority. The VAT refund procedures are processed smoothly, quickly, and efficiently, from the moment of purchase until the refund is completed when the tourist departs the country. This contributes to boosting tourism prosperity and fostering the growth of both e-commerce and traditional trade in the UAE.”

Eyad Alkourdi, General Manager of Planet, added: "The FTA has undoubtedly succeeded in achieving its vision of developing an integrated VAT refund system for tourists. We are proud to manage this exceptional initiative, which provides a comfortable and seamless shopping experience for international visitors.”

The FTA clarified that the “VAT Refund for Tourists on E-Commerce Purchases” system is designed with simple and clear procedures while ensuring compliance with tax legislation. Tourists in the UAE can apply for VAT refunds directly through e-commerce platforms registered with the Authority before their purchases are shipped. They can do so by providing their travel document details and relevant personal information to verify their eligibility at the time of purchase. The VAT refund registration is completed once the tourist’s identity is verified during delivery or online order fulfillment.

The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: www.tax.gov.ae