UAE’s Federal Tax Authority, Planet Tax Free launch digital VAT-refund scheme for tourists

The UAE’s Federal Tax Authority (FTA), in partnership with Planet Tax Free, has launched a fully digital VAT-refund scheme for tourists.

The new paperless solution is integrated electronically between retail outlets and the tax refund scheme, ensuring a seamless digital process of issuing, sending, modifying and saving invoices for tourists, as reported by the state news agency, WAM.

“The system achieves high satisfaction rates by users for its simple, effective and smooth tax-refund process for eligible tourists,” Khalid Ali Al Bustani, FTA director-general.

Tourist VAT refund transactions increased by 104.15 per cent during the current year, Al Bustani added, as the number of transactions doubled to 2.31 million transactions during the first eight months of this year.

In 2021, 1.13 million transactions were registered during the same period. The total value of tourist VAT refunds increased by 113.48 per cent from  January to the end of August 2022 compared to the same period in 2021.

Eyad Al-Kourdi, general manager of Planet Tax Free said, “In a matter of moments, shoppers can complete a transaction, receive a digital invoice and share it directly with Planet Tax Free. The electronic tax-refund system is integrated for purchases at a range of hotels, shopping centres, malls and other retail locations. Upon departure from the UAE, tourists can use one of more than 100 self-service kiosks available at departure points, for a simple, quick and hassle-free experience.”

Officials from the organisations estimated that more than 3.5 million traditional paper invoices will go digital, resulting in overwhelmingly positive benefits including keeping pace with the digital transformation strategy of the country, saving merchants up to five minutes per customer (compared to printing receipts), reducing friction to maintain public health at the point of sale and eliminating human error.

The 100 per cent paperless process will save more than 16,800 trees per year and more than 4,000 tonnes of carbon dioxide emissions.