How Tourists Can Claim VAT Refunds and Shop Tax-Free in the UAE

The United Arab Emirates (UAE) is one of the world’s most popular destinations for shopping. From luxury brands and gold jewellery to electronics and traditional handicrafts, the country offers something for every traveller. Since the introduction of Value Added Tax (VAT) in January 2018, all purchases in the UAE carry a 5% tax. However, tourists don’t need to worry there’s a system in place to get some of that money back.

This is called the Tax Refund for Tourists Scheme, a fully digital service that makes tax-free shopping simple and convenient. If you are planning to shop in Dubai, Abu Dhabi, Sharjah, or anywhere else in the UAE, here’s everything you need to know about how to shop tax-free and claim your VAT refund before you leave.

What Is Tax-Free Shopping?

Tax-free shopping means that eligible tourists can claim back the VAT they paid on certain goods purchased in the UAE, provided those goods are exported out of the country within a specific time limit.

The system is managed by the Federal Tax Authority (FTA) in partnership with Planet, the exclusive operator of the tax refund scheme. Most of the popular shops and malls in the UAE are registered under this scheme, so you will easily find outlets that allow tax-free shopping.

Who Can Claim a VAT Refund?

Not every traveller is eligible for a VAT refund. To qualify, you must meet these conditions:

• Age: You must be at least 18 years old.
• Tourist status: You must be a non-resident visitor to the UAE. Residents of the UAE and crew members of airlines and ships are not eligible.
• Goods purchased: Refunds apply only to goods bought from retailers registered under the Tax Refund for Tourists Scheme. Items such as motor vehicles, boats, aircraft, and goods that are consumed (fully or partly) inside the UAE cannot be refunded.
• Export requirement: The purchased goods must leave the UAE with you within 90 days of the purchase date.

Minimum Spend Requirement

To qualify for a VAT refund, you must spend at least AED 250 in a single purchase from a registered retailer.

How Much VAT Will You Get Back?

You will not receive the full 5% VAT paid. Instead, the refund is:

• 85% of the VAT amount you paid on your purchases.
• Minus a fee of AED 4.80 per tax-free tag.

Refunds can be received either in cash (UAE dirhams) or transferred to your credit/debit card.

👉 Note: If you choose cash, the maximum refund allowed is AED 35,000 per tourist. Any refund above this limit must be processed to your bank card.

How to Shop Tax-Free in the UAE

Here’s a step-by-step guide to make sure you shop correctly and claim your refund smoothly:

1. At the Store

• Look for shops displaying the “Tax-Free Shopping” logo.
• Make sure your total purchase is at least AED 250.
• Present your passport (or GCC National ID) to the cashier.
• The shop assistant will scan your ID and link the purchase to your details in the Planet system.
• A digital tax-free form is created, and a tax-free tag is attached to your receipt.

2. Keep Your Receipts and Goods

• Always keep the original tax invoice with the tax-free tag.
• Do not consume or use the goods in the UAE. They must be taken out of the country with you.

3. Validate Your Purchases at Departure

Before checking in your luggage at the airport, visit the tax refund validation counter or kiosk:

• Present your passport, tagged receipts, and purchased goods.
• If using a self-service kiosk, scan your passport and follow instructions.
• A green light means validation is successful. A red light means you must see Planet staff for manual validation.

Where Can You Validate Your Purchases?

Validation points are available at all major airports, seaports, and land borders in the UAE.

Airports

• Dubai International Airport (all terminals)
• Abu Dhabi International Airport
• Sharjah International Airport
• Other major airports across the UAE

Seaports

1. Port Zayed – Abu Dhabi
2. Port Rashid – Dubai
3. Port Khalid – Sharjah

Land Borders

1. Al Ghuwaifat – border with Saudi Arabia
2. Al Hili (Al Ain) – border with Oman
3. Al Madeef (Al Ain) – border with Oman
4. Hatta – border with Oman
5. Khatmat Malaha – border with Oman

Claiming Your Refund

Once your purchases are validated, you can claim your refund through one of these methods:

1. Cash Refund – Available in UAE dirhams, up to a maximum of AED 35,000.
2. Credit/Debit Card Refund – The refund is transferred directly to your card.
3. WeChat App Refund – Available for users of the WeChat payment system.

Refunds can be claimed immediately upon departure. If for some reason you miss claiming it, you can still apply for the refund within one year of the date of validation.

Important Things to Remember

• You must validate your purchases within 90 days from the purchase date.
• Goods must leave the UAE with you. If you consume or leave them behind, you will lose the refund.
• Always visit the validation counter before checking in your bags, as goods may need to be inspected.
• Not all shops are part of the scheme—look for the tax-free shopping logo before making your purchase.
• The refund you receive will be slightly less than the VAT you paid, as fees are deducted.

Example: How Much Can You Save?

Imagine you bought a gold necklace for AED 10,000 in Dubai Mall.

• VAT at 5% = AED 500.
• Refundable VAT (85%) = AED 425.
• After AED 4.80 tag fee = AED 420.20 refunded to you.

So instead of paying AED 10,500, your final cost after refund is AED 10,079.80. That’s a nice saving for just a few extra steps!

Final Thoughts

Shopping in the UAE is one of the highlights of any tourist visit, and the VAT refund system makes it even more rewarding. The process is straightforward if you remember the essentials:

• Spend at least AED 250 at registered stores.
• Keep your receipts and goods with you.
• Validate your purchases before leaving the UAE.
• Choose your preferred refund method.

By following these steps, you can enjoy tax-free shopping and take home more than just memories—extra savings too!

So next time you’re planning a shopping trip to Dubai, Abu Dhabi, or anywhere else in the UAE, don’t forget to take advantage of the tourist VAT refund scheme.

✈️ Tip for Travellers: Always allow extra time at the airport to validate your purchases and claim your refund before departure.

Need Expert Help with VAT in the UAE?
Navigating VAT rules can be tricky whether you’re a tourist trying to claim refunds or a business ensuring compliance with FTA regulations. Our VAT consultants provide step-by-step guidance, handle documentation, and ensure you don’t miss out on eligible refunds.

📞 Get in touch today and let our VAT experts make tax easy for you.