VAT Obligations and Tourist Refund Scheme for Retailers in the UAE

• VAT Collection Requirements: VAT-registered retailers must charge a 5% Value Added Tax on most goods and services, document all transactions accurately, and issue valid tax invoices, while also paying the net VAT difference to the Federal Tax Authority (FTA).
• Tourist Refund Scheme Participation: Retailers can attract international tourists by participating in the “Tax Refund for Tourists” scheme, which requires them to be VAT-registered, apply to the FTA, and comply with specific financial and operational criteria.
• Refund Process for Tourists: When tourists make qualifying purchases (minimum AED 250), participating retailers issue tax-free transactions that tourists can validate at exit points, allowing them to claim refunds on the VAT paid for goods taken out of the UAE.

Source Dr. Murad Qabajeh

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