Tourist VAT Refund Scheme in UAE — How It Works (2026)

Tourists can reclaim VAT paid in the UAE. The scheme has operated since November 2018 and now processes millions of refund claims per year through Planet Tax-Free — the FTA's exclusive operator.

The UAE introduced the Tourist Refund Scheme under Cabinet Decision No. 41 of 2018, later amended by Cabinet Decision No. 52 of 2019. The Federal Tax Authority (FTA) oversees the system, while Planet (formerly Planet Payment) handles day-to-day operations including digital validation, refund processing, and the in-store tagging system. In 2026, the scheme is fully digital — no more paper forms.

This guide covers every step from purchase to refund collection. For personalized VAT advice, explore the FindCPA VAT consultant directory.

What Is the Tourist VAT Refund Scheme?

The Tourist VAT Refund Scheme allows overseas visitors to reclaim the 5% VAT paid on eligible purchases made in the UAE. Tourists must buy from registered retailers, validate purchases digitally via Planet Tax-Free, and claim the refund at departure points (airports, seaports, or land borders). The scheme covers goods only — not services, hotel stays, or food consumed in the UAE.

The scheme was designed to boost retail tourism. It mirrors similar programs in the EU, UK, and other Gulf states but uses a fully digital system rather than paper-based forms.

Key characteristics:

• Tax refunded: 5% VAT (the standard UAE VAT rate)
• Operator: Planet Tax-Free (exclusive contract with FTA)
• Launch date: 18 November 2018
• Digital system: Fully electronic since launch — no paper forms
• Processing fee: AED 4.80 per validated tax-free tag

The refund is not the full 5%. Planet deducts a processing fee of AED 4.80 per tax-free tag. On a purchase of AED 250, the VAT is AED 12.50 — but after the fee, you receive AED 7.70. On larger purchases, the fee becomes proportionally smaller.

Who Is Eligible for a Tourist VAT Refund?

Any person who is not a UAE resident and not a crew member of a departing flight, vessel, or vehicle is eligible. The tourist must be 18 years or older, possess a valid passport, and depart the UAE within 90 days of the purchase date. UAE residents, GCC nationals residing in the UAE, and visitors who have stayed in the UAE for more than 365 consecutive days are excluded from the scheme.

Eligibility is strict:

GCC nationals who reside outside the UAE are eligible. GCC nationals who reside inside the UAE are not.

Transit passengers who purchased goods in the UAE and are departing through a UAE airport are eligible — even if they arrived from another UAE airport on a domestic flight.

How Much VAT Can Tourists Claim Back?

The gross refund is 5% of the purchase price (the full VAT amount). However, Planet Tax-Free deducts a processing fee of AED 4.80 per validated tax-free tag. There is no cap on the total refund amount per tourist, but each individual transaction must meet the AED 250 minimum spend threshold. Cash refunds at the airport are capped at AED 7,000 per day — amounts above this are processed to credit card only.

Here is how the net refund works at different spend levels:

The AED 4.80 fee is per tag, not per item. If you buy 10 items on one receipt from one retailer, it generates one tag — one fee. If you split across two transactions at the same retailer, that is two tags and two fees.

Refund methods:

• Credit card: Refund to Visa, MasterCard, or UnionPay — no daily cap, takes 5–10 business days
• Cash: Available at airport counters — capped at AED 7,000 per tourist per day
• Alipay/WeChat Pay: Available at some airports for Chinese tourists

Which Goods Are Eligible for VAT Refund?

Most physical goods purchased from registered retailers qualify, including electronics, clothing, jewelry, perfumes, watches, and accessories. Services are excluded — hotel stays, restaurant meals, car rentals, and spa treatments do not qualify. Goods that have been partially consumed, altered, or are not in the tourist's possession at departure are also ineligible. Motor vehicles and goods exported for commercial purposes are excluded.

Eligible goods must meet all of the following:

• Purchased from a VAT-registered retailer enrolled in the scheme
• Not consumed or altered in the UAE (sealed packaging helps prove this)
• Physically carried by the tourist at departure
• Not a motor vehicle
• Not for commercial resale

Frequently questioned items:

• Gold and jewelry: Eligible (and popular — gold purchases form a large share of refund claims in Dubai)
• Electronics: Eligible (iPhones, laptops, cameras)
• Perfumes: Eligible
• Prescription medication: Generally not eligible (classified as zero-rated in many cases)
• Tobacco and alcohol: Eligible for VAT refund (excise tax is a separate, non-refundable levy)

How Do Registered Retailers Participate in the Scheme?

Retailers must be VAT-registered with the FTA and separately enrolled in the Planet Tax-Free system to participate. Enrollment requires a valid Tax Registration Number (TRN), a business license, and a bank account. Registered retailers receive Planet terminals or integrate via API, which generate digital tax-free tags at the point of sale. The retailer still collects the full 5% VAT at the time of purchase — the refund is processed later at departure.

The retailer's obligations:

1. Collect full VAT at point of sale (the customer pays 5% VAT as normal)
2. Generate a tax-free tag via the Planet system (linked to the tourist's passport)
3. Print or email a receipt showing the tax-free tag number
4. Keep records of all tax-free transactions for 5 years

Retailers do not bear the cost of the refund. The FTA refunds the VAT to Planet, which then refunds the tourist (minus the processing fee).

Retailer enrollment numbers (approximate, 2026):

• Over 13,000 retail outlets across the UAE are enrolled
• Coverage spans all major malls, souks, and standalone stores
• Dubai accounts for approximately 70% of all enrolled outlets

What Is the Step-by-Step Refund Process?

Step 1: Purchase from a registered retailer and present your passport. Step 2: The retailer generates a digital tax-free tag linked to your passport. Step 3: At departure, use the Planet self-service kiosk to scan your passport — this validates all linked tags. Step 4: If prompted, present goods to a customs inspector. Step 5: Collect your refund via credit card or cash at the Planet counter. The entire departure process takes 5–15 minutes if no physical inspection is required.

Detailed walkthrough:

At the store:

• Tell the cashier you want a tax-free purchase before payment
• Present your passport (the system scans the biometric page)
• The cashier generates a tag on the Planet terminal
• You receive a receipt with the tag details
• Pay the full price including 5% VAT

At the airport (departure):

1. Before check-in (for checked luggage with refund goods): Go to the VAT refund kiosk in the departure hall, scan passport, get validation, then check in your bags
2. After immigration (for carry-on items): Use the airside kiosk to scan your passport
3. Kiosk validation: The kiosk displays all your linked tax-free tags. Approve them.
4. Random inspection: Some claims trigger a customs check — you must show the goods
5. Collect refund: Cash at the Planet counter or credit card refund processed automatically

Time limits:

• Tags must be validated within 90 days of the purchase date
• Validated refunds are processed within 5–10 business days (credit card) or immediately (cash)

Where Are VAT Refund Kiosks Located?

Planet Tax-Free kiosks and counters are available at all major UAE departure points. Dubai International Airport (DXB) has kiosks in Terminals 1, 2, and 3, both landside and airside. Abu Dhabi International Airport (AUH) has kiosks in Terminal A. Sharjah Airport (SHJ) also has facilities. Land borders with Oman and Saudi Arabia have kiosks at selected crossings. Cruise terminals in Dubai and Abu Dhabi also process refunds.

Operating hours: Most airport kiosks are available 24/7. Land border kiosks follow border operating hours. Cash counters have more limited hours — typically 6am to midnight.

What Are Common Reasons for Refund Rejection?

The most common rejection reasons are: expired tags (more than 90 days since purchase), failure to present goods when selected for inspection, invalid passport data (mismatch between purchase passport and departure passport), and purchases below the AED 250 minimum. Tags from non-enrolled retailers are automatically rejected. Partially consumed goods and goods shipped separately (not carried by the tourist) are also grounds for denial.

Ranked by frequency:

1. Tag expired — Purchase was more than 90 days before departure
2. Goods not present — Tourist checked goods in luggage without validating landside first
3. Passport mismatch — Different passport used at purchase vs. departure
4. Below minimum — Transaction under AED 250
5. Non-enrolled retailer — Store not registered with Planet
6. Consumed goods — Items opened/used in the UAE
7. UAE resident — Tourist holds a UAE residence visa
8. Technical error — Kiosk failure or system downtime (rare in 2026)

How to avoid rejections:

• Always validate landside if goods are in checked bags
• Keep all receipts until the refund is confirmed
• Use the same passport at the store and at the airport
• Consolidate purchases above AED 250 per transaction
• Do not open sealed items before departure

What Are the Tax Implications for UAE Retailers?

Retailers continue to account for VAT on tax-free sales in their normal VAT returns. They report the sale as a standard-rated supply and include the output VAT. When the FTA processes the tourist refund, the retailer is not directly affected — the FTA reimburses Planet, and Planet refunds the tourist. The retailer's VAT liability remains unchanged. The only operational cost for the retailer is the Planet terminal rental and per-transaction service fees.

For retailers, the VAT accounting treatment is straightforward:

• Box 1 of the VAT return: Include the sale as standard-rated revenue
• Output VAT: Report the full 5% VAT charged
• No adjustment needed: The refund is between FTA, Planet, and the tourist

Retailers pay Planet a service fee (typically 1–2% of the transaction value) for participation in the scheme. This is a deductible business expense.

How Does the Digital Tax-Free System Work?

The Planet Tax-Free system is fully digital. At the point of sale, the retailer's terminal creates an electronic tag linked to the tourist's passport number. All tags are stored centrally in Planet's cloud system. At departure, the tourist scans their passport at a kiosk — the system retrieves all linked tags automatically. No paper forms, no manual data entry. The system cross-references with FTA immigration data to confirm the tourist is actually departing.

Technical architecture:

• Point of sale: Planet terminal or API integration creates the tag
• Central database: All tags stored in Planet's UAE-hosted cloud
• Kiosk validation: Passport scan retrieves tags; tourist confirms
• Immigration cross-check: System verifies departure via FTA-immigration data sharing
• Refund processing: Approved claims processed in batch to credit cards or flagged for cash

The digital system replaced a paper-based pilot that ran briefly in 2018. The electronic system has processed over 30 million tags since launch.

What About Special Situations?

Several edge cases require attention: transit passengers connecting through the UAE can claim refunds at their final UAE departure point. Tourists returning goods after claiming a refund must repay the VAT to the retailer. Group tours can process individual refunds if each tourist has their own passport-linked tags. Goods purchased online for in-store pickup are eligible if the retailer is enrolled and generates a tax-free tag at the pickup point.

Transit through two UAE airports: If you fly from Abu Dhabi to Dubai and then internationally, claim the refund at Dubai (your final UAE departure point).

Partial returns: If you return an item to the retailer after getting a refund, the retailer should collect the VAT back. In practice, the Planet system can void individual tags.

GCC travel after UAE: If you leave the UAE for Oman or Bahrain and then fly out of the GCC from another country, you must claim the UAE refund at the UAE border exit — not at the other country's airport.

Lost passport: If your passport is stolen/lost and you get an emergency travel document, you may not be able to claim refunds linked to the old passport. Contact Planet customer service before departure.

How Does the UAE Scheme Compare to Other GCC Countries?

The UAE was the first GCC country to implement a tourist VAT refund scheme. Saudi Arabia launched a similar scheme in 2024 under ZATCA. Bahrain and Oman have VAT but no tourist refund scheme yet. Qatar and Kuwait do not have VAT. The UAE scheme is the most mature in the region, with the highest number of enrolled retailers and the most advanced digital infrastructure.

Saudi Arabia's 15% VAT rate makes its refund scheme significantly more valuable per transaction than the UAE's 5% — a AED 1,000 equivalent purchase yields SAR 150 in VAT versus AED 50 in the UAE.

Frequently Asked Questions

Can I claim a VAT refund if I am a UAE resident with a valid residence visa? No. UAE residents are excluded from the tourist refund scheme regardless of nationality. Your Emirates ID or residence visa stamp in your passport will disqualify you at the kiosk.

Do I need to show the actual goods at the airport? Not always. The kiosk uses risk-based selection. Most claims are approved automatically. However, if selected for inspection, you must present the goods or your claim will be denied.

Can I claim VAT refunds on hotel stays or restaurant bills? No. The scheme covers physical goods only. Services — including accommodation, dining, entertainment, and transportation — are excluded.

Is there a deadline to claim my refund after leaving the UAE? Yes. Tags must be validated before you leave the UAE. You cannot claim retrospectively after departure. The 90-day window runs from the purchase date to the departure date.

What happens if the kiosk is not working? Report to the Planet counter staff. They can process claims manually using a handheld device. System outages are rare but staff are trained for manual processing.

Keep Reading

• Excise Tax in UAE — Which Products and How Much
• VAT Penalties Matrix for UAE Businesses
• VAT on Free Zone Transactions in UAE
• Browse All VAT Consultants

Find a VAT Consultant →