TOURISTS CAN CLAIM VAT REFUND OR NOT ?

TOURISTS CAN CLAIM VAT REFUND OR NOT ?

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The answer to above question is YES, as all other countries with similar tax system allow travelers to claim vat. Tourists to the UAE will also be able to claim back the VAT on purchases they make whilst visiting the country, according to a draft executive regulation released by the Federal Tax Authority (FTA).Although till now the details are still not shared how the system will proceed. However it does state that the refund system would only be eligible to those travelling to the UAE from outside the Gulf Co-operation Council (GCC).

Federal Taxation Authority has suggested that the exact mechanism for this claim will be agreed upon, and announced, by the UAE’s Cabinet, in coming time.

According to the document, posted to the FTA’s website, the Cabinet “may issue a decision introducing the Tax Refunds for Tourists Scheme,” which will specify the following: The date on which the scheme comes into effect, the mechanism for tax refunds, and the limitations on claiming tax refunds, among other details.

Many countries which have similar tax regimes also offer VAT refunds to tourists.

For example, in United Kingdom shoppers who visit the country but live outside the EU and are going back home can get a refund on their VAT at customs as they leave the country.

Whilst in the UK, tourists can ask for a VAT 407 form from the retailer, and then upon leaving the country, they will be asked to show the goods, the completed form and their receipts to customs at the airport as they leave.