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The Federal Tax Authority (FTA) of the UAE has announced the world's first paperless tax refund scheme for tourists.
The biggest challenge for tourists was carrying lots of papers to claim refunds. When tourists make purchases, there is a printed invoice with a sticker showing the reference number of the tourist refund code. Paperwork will be checked on arrival at the airport for audit. This is a long process. Therefore, we worked with our partner Planet Tax to ensure that the data is ready and refunds can be collected before tourists arrive at the airport,” said Khalid Ali Al Bustani, Director General of the Federal Tax Authority (FTA). The UAE is the first country in the world to achieve this feat. Tourists can access details of their VAT refunds online through the Planet Tax-Free website.
The system is linked to retailers and hence all receipts will be generated electronically and tourists do not need to carry paper receipts of their purchases to claim the Federal Tax Authority, requiring tourists to spend a minimum of Dh250 to claim VAT refunds. Also, several kiosks have been set up at various locations across the country where tourists can claim refunds.
“Tourists can check their refund amounts on Planet Portal once the invoice is posted. The service has now been activated and within a year 95 percent of traders will be covered under the scheme,” said the FTA Director General.
Tourist VAT refund transactions doubled to 2.31 million in the first eight months of this year, the FTA said. In 2021, 1.13 million transactions were registered during the same period.
It is estimated that more than 3.5 million paper invoices will go digital, saving merchants up to five minutes per customer compared to printing a receipt and eliminating human error.
The UAE is the first country to go paperless," he said at a press conference on Wednesday.