TRW & Co · VAT
VAT Refunds for Tourists in the UAE, and the Other Charges Visitors Pay
The VAT refund for tourists UAE scheme returns most of the 5% VAT on goods that visitors take home. You must be an adult non-resident tourist, spend at least AED 250 excluding VAT with a registered retailer, validate within 90 days and leave within 6 hours. The operator keeps 13% of the VAT plus AED 3.60 per transaction.
Key pointThe fixed AED 3.60 charge applies to each tax-free transaction, and the minimum spend applies per transaction, so one consolidated invoice is better than several small ones, and goods must be in hand, unused, at validation.
At a glance
Who can claim
Tourists aged 18 or over who are not UAE residents can claim, using their own original passport or GCC national ID at validation.
Minimum spend
The FTA sets a minimum eligible spend of AED 250, excluding VAT, per refund transaction with a retailer registered in the scheme.
Fees deducted
The operator deducts 13% of the VAT requested plus AED 3.60 for each tax-free transaction, as published by the FTA in 2026.
Time limits
Validate within 90 days of the invoice date, leave within 6 hours of validation, and request payment within one year of export validation.
Hotel charges
Hotel fees such as Dubai's Tourism Dirham of AED 7 to AED 20 per room per night cannot be refunded under the tourist scheme.
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The short answer: how the VAT refund for tourists UAE scheme works
The VAT refund for tourists UAE scheme lets eligible visitors reclaim most of the 5% VAT paid on goods bought from participating retailers, provided they take the goods out of the country. The tourist asks for a tax-free transaction at the till, validates it at a kiosk or desk before leaving the UAE, and receives the refund in cash, to a card or to a digital wallet, minus the operator's fees.
According to the FTA tourist refund service page, as of October 2026 the key conditions are: the visitor must be a tourist, aged 18 or over and not resident in the UAE; the minimum eligible spend is AED 250, excluding VAT, per refund transaction; transactions must be validated within 90 days of the tax invoice date; and the visitor must leave within 6 hours of validation. The operator deducts 13% of the VAT requested plus AED 3.60 per tax-free transaction.
This guide explains eligibility, the claim process, fees and limits, what retailers must do, and the other charges visitors meet in UAE hotels. It is written for travellers, retailers, hotel operators and e-commerce businesses selling to visitors.
The legal framework and who runs the scheme
VAT is imposed by Federal Decree-Law No. 8 of 2017 on Value Added Tax, and the VAT Law allows the Cabinet to provide for refunds to tourists. The detailed conditions sit in the VAT Executive Regulation, Cabinet Decision No. 52 of 2017, and in decisions and operating rules issued by the Federal Tax Authority (FTA). The texts are in the FTA legislation library.
The FTA runs the scheme through a single service provider, Planet, which operates the electronic system that links retailers' tax-free tags to the tourist's passport, runs the validation kiosks and desks, and pays the refunds. The scheme has operated since 2018 and is fully digital: there are no paper forms to stamp.
Because VAT is federal, the same scheme applies across all seven emirates. Visitors can buy in one emirate and validate at an exit point in another. The DIFC and ADGM have no separate tourist refund regime.
The fee structure has been revised over the life of the scheme; the current fixed charge is AED 3.60 per tax-free transaction alongside the 13% deduction. Always check the FTA page before relying on a figure, because operating rules can change by decision.
Eligibility for the VAT refund for tourists UAE scheme
Three sets of conditions apply to every VAT refund for tourists UAE claim: conditions on the visitor, on the retailer and on the goods.
The visitor
The FTA's conditions are that the claimant entered the UAE as a tourist, is 18 or older and is not a UAE resident. Only the passport holder, or the holder of a GCC national identity card used for travel, can start or complete validation. UAE residents, including expatriates with a residence visa, cannot use the scheme.
The retailer
Only purchases from retailers registered with the scheme qualify, together with purchases from registered e-commerce websites. Participating shops usually display tax-free shopping signage. A purchase from a shop outside the scheme does not qualify, even if it is VAT-registered and issues a full tax invoice.
The goods
The scheme covers goods, not services. Hotel stays, restaurant meals, tours, transport and event tickets are outside it. Goods must leave the UAE with the tourist, unused. Items consumed or partly consumed in the UAE, such as food and opened cosmetics, do not qualify, and motor vehicles, boats and aircraft are excluded. The full list sits in the operator's local rules, summarised in Planet's tourist FAQs.
| Condition | Rule | Source |
|---|---|---|
| Who qualifies | Tourist, aged 18 or over, not a UAE resident | FTA service page |
| Minimum spend | AED 250, excluding VAT, per refund transaction | FTA service page |
| Validation window | Within 90 days of the tax invoice date | FTA service page |
| Departure after validation | Within 6 hours, or validation is cancelled | FTA service page |
| Deadline to request refund | Within one year of export validation | FTA service page |
| Fees | 13% of VAT requested plus AED 3.60 per tax-free transaction | FTA service page |
| Cash limit | Up to AED 35,000; card refunds have no cap | FTA service page |
How to claim the refund, step by step
The VAT refund for tourists UAE process has no paper forms. It runs on the passport link created at the till.
- Shop at a participating retailer. Ask for a tax-free transaction at the till and present your original passport so the purchase is linked to it electronically. Keep the tax invoice.
- Track your purchases. Planet's shopper portal and app show the tax-free transactions linked to your passport, which helps you spot missing tags before you leave.
- Choose where to validate. Validate at kiosks or manned desks at airports, seaports and land borders. Kiosks in some malls and hotels can validate if you have an online boarding pass for a flight within 24 hours.
- Scan your passport. Use the original passport or GCC national ID. Copies are not accepted. Have your ticket or booking ready for air or sea departures.
- Present the goods if asked. Staff may ask to inspect items, so keep high-value purchases in hand luggage until validation is complete.
- Leave within 6 hours. If you do not depart within 6 hours of validation, the approval is cancelled and the process must be repeated.
- Select the refund method. Choose cash at a partner exchange counter after immigration, a refund to a bank card, or a supported digital wallet.
Validation must happen within 90 days of the tax invoice date. A visitor who misses that window, or who leaves without validating, loses the refund. A refund request can be made within one year of validation, which helps if the visitor validated but did not collect payment on the day.
Validate early in the departure process, and keep the goods accessible. A tourist who checks a suitcase full of tagged purchases before reaching the kiosk may be unable to show them if asked, and the refund can be refused. Where a mall or hotel kiosk is available the day before an evening flight, using it removes the airport queue from the equation.
Fees, refund methods and how much you actually get back
Under the VAT refund for tourists UAE rules, the refund equals the VAT shown on the eligible purchases, minus 13% of that VAT, minus AED 3.60 for each tax-free transaction. On a single purchase of AED 1,000 plus AED 50 VAT, the deduction is AED 6.50 plus AED 3.60, so the tourist receives AED 39.90. Several small purchases each carry the fixed charge, so consolidating purchases with one retailer on one invoice is slightly more efficient than many separate transactions.
| Method | Limit | Timing | Points to watch |
|---|---|---|---|
| Cash in dirhams | Up to AED 35,000 | At a partner exchange counter after immigration | Available only at exit points with a counter |
| Bank card | No cap | The FTA indicates up to 9 calendar days | Paid in the card currency at the bank's exchange rate |
| Digital wallet | Per provider rules | Near-instant where supported | Only the wallets the operator supports |
For large purchases such as watches, jewellery and electronics, the cash cap means the balance must be paid to a card. Gold jewellery carrying 5% VAT on the item can qualify, but investment-grade gold that is zero-rated carries no VAT to refund. Our guide on how to calculate VAT in the UAE explains how VAT is extracted from an inclusive price, which is how the refundable amount is fixed.
Retailer and e-commerce obligations
For retailers, the VAT refund for tourists UAE scheme is voluntary but commercially important in tourist-heavy locations. A retailer must be VAT-registered and join the scheme through the operator, install or connect to the tax-free system, and issue tags only for qualifying sales to qualifying customers. Our guide to VAT registration in the UAE covers the first step.
The retailer charges VAT in the normal way. Refunds paid to tourists under the scheme are reported in the retailer's VAT return in the box designated for tax refunds provided to tourists, so the retailer's net liability reflects the VAT that has been refunded. That makes the retailer's own records central: the tax invoice, the tag, the validation data and the reconciliation to the return must agree.
What retailers get wrong
- Issuing tags for services or consumables that are excluded.
- Issuing tags to customers who are UAE residents, or splitting invoices to meet the minimum.
- Failing to reconcile operator reports with the return, which leaves differences an FTA auditor will notice.
- Training gaps at peak season, when staff are under pressure and errors multiply.
E-commerce sellers can participate if registered under the scheme. The tourist applies through the platform before shipment and still validates on departure; goods must be delivered so that they can leave with the tourist. Retailers selling to visitors should also review their price displays: prices must be shown VAT-inclusive under the VAT Law. Our page on consumer protection in the UAE explains the related consumer rules.
Other taxes and charges visitors pay
The UAE has no personal income tax and no general sales tax beyond VAT, but visitors meet several other charges, mostly built into prices or hotel bills.
| Charge | Where | How it works |
|---|---|---|
| VAT | All emirates | 5% on most goods and services, including hotels and restaurants; only goods can be refunded under the scheme |
| Tourism Dirham | Dubai | AED 7 to AED 20 per room per night by hotel category, for up to 30 consecutive nights |
| Tourism fee | Ras Al Khaimah | AED 15 per room per night |
| Tourism and municipality fees | Abu Dhabi | Percentage-based fees on hotel bills, set by the emirate's authorities and revised in recent years |
| Service charges and municipality fees | Hotels and restaurants | Percentage charges vary by emirate and venue and are usually itemised on the bill |
| Excise tax | All emirates | Built into the price of tobacco, energy drinks, carbonated and sweetened drinks |
The Dubai and Ras Al Khaimah figures are those published on the UAE Government portal. None of these charges can be reclaimed under the VAT refund for tourists UAE scheme. For businesses in the sector, our page on hospitality and leisure in the UAE covers licensing and fee obligations, and our article on UAE excise tax explains the excise regime.
Illustrative scenario: a family's refund at the airport
This scenario is illustrative; the figures are generic.
A visiting family buys a watch for AED 20,000 plus AED 1,000 VAT, clothing in two shops for AED 600 and AED 200 (each excluding VAT), and a hotel spa treatment. At the till, the watch and the AED 600 purchase are tagged. The AED 200 purchase is below the AED 250 minimum and cannot be tagged, and the spa treatment is a service outside the scheme.
At the airport the parent who made the purchases scans their passport at a kiosk before check-in and shows the watch when asked. The VAT requested is AED 1,030. The deduction is 13% (AED 133.90) plus two transaction charges (AED 7.20), so the refund is AED 888.90. The family chooses a card refund because the amount is well under the cash cap but they prefer not to carry cash. The teenage child, who bought a gift separately, could not claim because claimants must be 18 or over.
Common mistakes and how to avoid them
Assuming every shop is in the scheme
Only retailers registered with the scheme can issue tax-free tags. A VAT invoice alone does not support a refund, and a retailer cannot add a purchase to the system after the fact if it was not tagged at the time of sale. Visitors planning significant purchases should check for tax-free signage or ask before paying. For retailers, the commercial message is the reverse: in tourist areas, not being in the scheme can cost sales to competitors who are.
Missing the 90-day or 6-hour windows
Validation must take place within 90 days of the tax invoice date, so visitors on long stays should not buy refundable goods early in the trip. Once validated, the visitor must leave within 6 hours; validating at a mall the day before a delayed flight can mean the approval lapses and must be repeated. The one-year window applies only to requesting payment after a valid validation, not to validating late.
Packing the goods before validation
Staff may ask to see the goods. If they are in checked baggage, the claim may be refused. Keep tagged items, especially high-value ones, in hand luggage or validate before checking bags. Goods used during the stay, such as a camera that has clearly been in use or opened cosmetics, can also be refused because the scheme covers goods exported unused.
Retailers mis-tagging residents and services
Tagging a sale to a UAE resident, or tagging services or consumables, creates a refund that should not have been paid and an error in the retailer's records. Through its audit powers the FTA can review the retailer's tax-free transactions alongside its VAT returns. Retailers should train staff, configure point-of-sale systems to block ineligible items and review exception reports regularly.
What to do next
For visitors, the VAT refund for tourists UAE process is straightforward if you shop at registered retailers, link purchases to your passport, keep the goods with you and validate before you leave. For retailers, hotels and e-commerce businesses, the scheme sits within the wider VAT compliance picture, and errors appear on audit as return differences.
- Visitors: carry your original passport, check for tax-free signage, and validate within 90 days and no more than 6 hours before departure.
- Retailers: confirm VAT registration, join the scheme, configure systems to block excluded goods and reconcile operator reports to your returns.
- Hotels and restaurants: itemise emirate fees correctly and display VAT-inclusive prices.
- E-commerce: confirm platform registration and delivery arrangements that allow export with the tourist.
VAT return preparation and bookkeeping for retailers are delivered with our group company A&A Consultancy; TRW & Co advises on the legal side, including scheme participation, consumer law and FTA audits. See our overview of VAT in the UAE, or contact us at info@trw.co or +971 58 942 1012.
Frequently asked questions
01How much VAT do tourists get back in the UAE?
Tourists receive the VAT paid on eligible goods minus two deductions: 13% of the VAT requested and a fixed AED 3.60 for each tax-free transaction. On a purchase of AED 1,000 plus AED 50 VAT, the refund is AED 39.90. The deduction structure means larger, consolidated purchases recover proportionally more than several small ones. Services such as hotel stays and meals are not refundable, so the effective recovery on a whole trip is usually lower than the headline 5%.
02What is the minimum purchase for a UAE tourist VAT refund?
The FTA sets the minimum eligible spend at AED 250, excluding VAT, per refund transaction. The test applies to each tax-free transaction with a registered retailer, so two separate purchases of AED 200 cannot be combined across different shops. Retailers should not split or merge invoices artificially to meet the minimum. Visitors planning several small purchases at one store can ask for them to be processed together on one invoice where the purchases are genuinely made at the same time.
03Can I claim a VAT refund on online purchases in the UAE?
Yes, if the online retailer is registered under the tourist refund scheme. The tourist applies through the platform before the goods are shipped, and the goods must still be exported with the tourist and validated on departure in the usual way. Purchases from platforms that are not registered do not qualify. Delivery arrangements matter: goods shipped abroad separately, rather than carried by the tourist, generally fall outside the scheme rules.
04Can UAE residents use the tourist VAT refund scheme?
No. The FTA limits the scheme to tourists who entered the UAE on a tourist visa, are 18 or older and are not UAE residents. Expatriates holding a UAE residence visa cannot claim, even when buying goods to take abroad on holiday. Only the passport holder can validate their own purchases, so a resident cannot claim on behalf of a visiting relative. Retailers who knowingly tag sales to residents create an error in their own VAT records.
05What is the cash limit for tourist VAT refunds?
Cash refunds are limited to AED 35,000, paid at a partner exchange counter after immigration. Any larger amount must be refunded to a bank card, which has no cap and, according to the FTA, can take up to 9 calendar days, or to a supported digital wallet. Card refunds are made in the card currency at the bank's exchange rate. Visitors should check the operator’s current guidance on what to bring before travelling to the airport.
06Is the Dubai Tourism Dirham refundable?
No. The Tourism Dirham is a separate Dubai fee charged per room per night, between AED 7 and AED 20 depending on hotel category, for up to 30 consecutive nights. It is not VAT and cannot be reclaimed under the tourist refund scheme. The same applies to hotel service charges, municipality fees and tourism fees in other emirates, such as the AED 15 per room per night fee published for Ras Al Khaimah.
Sources and official materials
- Federal Tax Authority: VAT refund for tourists — Eligibility, minimum spend, fees, time limits and refund methods
- Planet: tourist frequently asked questions — Operator rules, excluded goods and claim locations
- UAE Government portal: taxes in tourist facilities — Tourism Dirham and emirate hotel fees
- Federal Tax Authority: legislation — VAT Law and Executive Regulation
- Federal Tax Authority: VAT — VAT guides and public clarifications
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
