UAE announces world’s first paperless tax refund experience for tourists

UAE announces world’s first paperless tax refund experience for tourists

The system has been linked with the retailers, hence all the receipts will be generated electronically, says FTA official

Published: Wed 14 Sep 2022, 11:33 AM Last updated: Wed 14 Sep 2022, 11:38 AM

The UAE on Wednesday announced the world’s first paperless tax refund experience for tourists.

Khalid Ali Al Bustani, director-general of the Federal Tax Authority (FTA), said the system has been linked with the retailers hence all the receipts will be generated electronically and tourists will not have to carry papers and receipts of their purchases when going to airports to claim VAT refunds.

This was announced at a press conference which was attended by senior officials of the Federal Tax Authority, Planet Tax, Seddiqi Holding, Rasool Khoory, GMG and Apparel.

The UAE introduced a five per cent value-added tax (VAT) in 2018 and tourists in the country can claim a VAT refund on the purchases made at the outlets upon leaving the country.

“The biggest challenge for tourists was to carry a lot of papers to claim the refund. When tourists make purchases, they have a printed invoice with a sticker which shows the reference number of the tourist refund code. When they come to the airport for an audit, they will