Who Is Eligible for a Tax Refund in Dubai? Key Rules Explained
January 16, 2026
Who Is Eligible for a Tax Refund in Dubai? Key Rules Explained
Understanding how a tax refund works in the UAE can save tourists and eligible visitors a significant amount of money—especially when shopping during their stay. With the VAT refund and tax-free systems now fully digitised, claiming a refund is more structured, transparent, and accessible than ever before.
This guide explains who is eligible, how the tourist refund scheme operates, and what steps are required to successfully apply for a refund before departure from the UAE. If you want clarity on rules, timelines, and common mistakes, this article is worth reading from start to finish.
Understanding the Refund Framework in the UAE
The refund scheme in the UAE allows eligible visitors to recover part of the value added tax paid on qualifying purchases. This system is overseen by the Federal Tax Authority, which works closely with approved operators to ensure the process remains compliant and efficient.
At its core, the tax refund scheme is designed for non-resident tourists who make purchases from retailers registered under the tax refund system. The goal is to encourage spending while maintaining clear taxation rules that protect government revenue.
For a refund to be valid, purchases must meet minimum thresholds, be made from stores that are registered under the tourist program, and comply with export requirements. The FTA monitors these transactions through a central refund system that tracks invoices, tags, and validation points.
Who Can Access Tax-Free Shopping Benefits
Tax free shopping is available to tourists who are not residents of the United Arab Emirates and who enter the country using travel documents used to enter the UAE for temporary stays. To be eligible for refund, visitors must not hold a residency visa and must be leaving the country within the allowed timeframe.
The tourists scheme applies only to personal goods purchased for export, not items consumed during the stay in the UAE. This means products like electronics, fashion, and accessories qualify, while hotel services or meals do not.
To ensure eligibility, retailers verify passport details at the time of purchase and issue a digital tax-free tag linked to the invoice date and goods purchased.
How the Tourist Refund Scheme Works in Practice
The tourist refund scheme operates through a fully digital process developed in cooperation with Planet, the official operator. Under this system for tourists, eligible purchases are recorded electronically at the point of sale.
When shopping, visitors must ensure the store is among retailers who are registered and registered with Planet. These stores are registered to issue digital receipts and tax-free documentation instantly.
Once issued, the digital tax-free record is stored until validation at exit points. This eliminates paperwork and reduces errors during the refund application process.
VAT Refund Rules Tourists Must Follow
To claim a VAT refund, the VAT amount paid must be linked to qualifying goods that must export out of the country. Validation must occur within 90 days or 90 days from the date of purchase, depending on the category of goods.
Each transaction must meet the minimum purchase value of AED 250, excluding VAT. Additionally, a service charge of AED 4.80 or AED 4.80 per transaction is applied and deduct automatically during processing.
Only 85 per cent of the eligible VAT is returned, reflecting the standard per cent refund structure after fees and deduction.
Refund Validation at Airports and Exit Points
Before you depart, all purchases must be validated at an approved airport, seaport, or land borders. Validation confirms that the relevant goods are leaving the country unused.
Major exit points include international airports, such as Sharjah Airport, where travellers can access dedicated validation counters or self-service kiosks. These kiosks located near departure halls streamline the process at the time of departure.
At validation, officials may request to see the receipt, passport, boarding pass, and items purchased. Once verified, the tax-free tag is confirmed in the system.
Steps to Claim and Receive Your Refund
The steps to claim a refund are straightforward but must be followed carefully. First, ensure purchases are made at retailers registered under the program. Second, validate goods at the exit point before you depart.
Travellers can then request a refund through approved channels. Options include a card refund or refund in cash, subject to limits. Cash refunds are capped in dirhams, while card refunds may take several days to process.
You can also apply for a refund using a mobile app linked to the planet tax-free platform, allowing tracking and confirmation within one year or one year from the date of purchase, provided validation occurred on time.
Export and Timeframe Requirements Explained
All goods must be exported within one year or within one year of purchase, depending on category, with validation occurring before departure from the UAE. The date of export must align with travel records.
Failure to validate purchases or missing the within 90 days rule will void eligibility. This applies regardless of whether the goods are high-value or low-value.
Maintaining accurate records during tax periods ensures compliance if authorities conduct post-travel checks.
Common Reasons Refund Applications Are Rejected
Refunds may be denied if goods are consumed locally, invoices are incomplete, or purchases are made from sellers not registered under the tax refund system. Missing validation at exit points is another frequent issue.
Errors in personal details or failure to validate the tax-free tag can also cause delays or rejection. Tourists may request a refund only once all criteria are met.
Understanding the requirement to submit accurate information reduces the risk of losing your claim back opportunity.
Final Thoughts on Eligibility and Compliance
The tax-free framework in the UAE within a clear regulatory structure ensures transparency and consistency for travellers. With proper planning, tourists may request a refund efficiently and confidently.
The system benefits both visitors and the economy, reinforcing the refund for tourists initiative while maintaining strong oversight by the FTA. Following the rules carefully ensures a smooth experience from purchase to validation.
Need Expert Support? Speak to RSN Finance
While tourist refunds are straightforward, navigating tax refund rules for businesses, VAT compliance, or complex refund matters requires professional guidance. RSN Finance provides expert support across VAT, compliance, and refund processes, ensuring accuracy and peace of mind.
If you need help understanding eligibility, preparing documentation, or managing refund-related compliance, reach out to RSN Finance today and let our specialists handle the process on your behalf.
Frequently Asked Questions
Planet Tax Free is a global tax refund operator that helps tourists claim a VAT refund on eligible purchases in the UAE. Retailers registered with Planet Tax Free issue tax-free tags on invoices, and tourists can use these tags to request a refund at designated kiosks or through digital tax-free services. This streamlines the refund process and ensures compliance with Federal Tax Authority regulations.
Yes, it is possible for an authorized person to process a VAT refund on behalf of a tourist in the UAE. The authorized individual must present the original receipts, tax-free tags, and relevant identification documents to the refund kiosk or operator. The Federal Tax Authority guidelines ensure that refunds processed on behalf of tourists are secure and compliant.
“Per tax-free tag” refers to the calculation of the refundable VAT amount associated with each tax-free tag issued for a purchase. Each tag represents the VAT paid on a specific invoice, and the refund is processed based on the number of valid tags submitted. This ensures accurate and traceable refunds for tourists.
Yes, when claiming a VAT refund in the UAE, a small processing fee may be deducted per tax-free tag. The fee is charged by the tax refund operator, such as Planet Tax Free, and covers administrative and service costs. Tourists receive the remaining refundable amount either in cash or via card transfer.
Planet Tax Free provides digital and self-service solutions to validate the export of purchased goods at airports or seaports in the UAE. By scanning the tax-free tag and receipts, the system confirms that the goods are leaving the country within the required timeframe, allowing tourists to quickly and securely claim their VAT refund.
Looking for an expert corporate tax consultant in Dubai?
The FTA can freeze your business bank accounts to recover unpaid VAT, making it impossible to pay suppliers, staff, or other obligations.
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