Tax refunds for tourists schemea great success as 1st phase implemented: FTA

H.E. Khalid Al Bustani: The UAE is among the first nations in the world to implement a fully digital system, ensuring customer satisfaction and boosting national competitiveness.

Abu Dhabi:The Federal Tax Authority (FTA) asserted that the digital system for the Tax Refunds for Tourists Scheme has achieved notable success in the past few days since it came into effect on Sunday, November 18, 2018, noting that FTA officials were present at the Abu Dhabi, Dubai, and Sharjah international airports – the ports of entry included in the first phase of the project – to verify that the Scheme is running smoothly.

FTA Director General His Excellency Khalid Ali Al Bustani applauded the Scheme’s success, evidenced by several indicators such as the high satisfaction rate among tourists with regards to the procedures, where the UAE was the first country in the world to implement a fully integrated, seamless system allowing tourists to recover taxes incurred on purchases made while visiting the UAE, and verify their eligibility for recovering tax using the system’s built-in mechanisms. This, in turn, supports the government’s efforts to implement the tax system and ensure it is in line with international best practices.

“The new Scheme’s smooth launch stems from the strategic partnerships between the FTA and all relevant entities in the UAE, particularly, the Federal Authority for Identity and Citizenship, whose contributions made it possible to verify tourist information and eligibility for a refund,”

H.E. Al Bustani added, asserting that these partnerships were crucial for ensuring the success of the Scheme and raising awareness around it.

The FTA Director General lauded the Federal Authority for Identity and Citizenship for its great efforts and cooperation with the Federal Tax Authority to verify tourist information and avoid any attempts at manipulation.   

“The successful launch of the Tax Refunds for Tourists Scheme is an important new accomplishment the Federal Tax Authority has registered since its launch, complementing its success in implementing a fully electronic system characterised by accuracy, transparency, and ease of use,” H.E. said. “The Authority seeks first and foremost to ensure the happiness of its customers, promote sustainable development and a better quality of life, support the UAE economy, and boost the country’s competitiveness.”

H.E. Al Bustani went on to add: “The Authority seeks to build an integrated platform of advanced electronic systems to promote innovation and improve quality of life for citizens, residents and visitors. The new Tax Refunds for Tourists Scheme was implemented in collaboration with systems operator Planet, reflecting the UAE’s vision to become one of the best and most advanced countries in the world by 2021.”

For his part, H.E. Brigadier Saeed Rakan Al Rashidi, Acting Director-General for Foreigners Affairs and Ports at the Federal Authority for Identity and Citizenship, lauded the coordination and partnership with the FTA, which helped accomplish the first phase of this vital project, implemented in accordance with the highest international standards in the sector.

H.E. asserted that implementing the new system promotes tourism in the UAE, especially in light of the recent series of Cabinet Decisions, such as introducing a visa fee exemptions for individuals under 18 years of age accompanying foreign visitors to the UAE from July 15 to September 15 every year, as well as for transit visitors for the first 48 hours. This helps establish an integrated legislative and technological ecosystem to enhance the tourism sector.

“We are committed to strengthening the continuous cooperation and coordination to promote further integration as a means for the development and modernisation of the UAE’s tourism and travel infrastructure – one of the most important sectors contributing to the country’s GDP,” H.E. added.

“The Tax Refunds for Tourists Scheme’s electronic system is of particular importance at this stage, as it reflects a positive image of the UAE and highlights the continuous development taking place across all sectors. The UAE has become a leading destination for tourists and visitors, drawn to its safe environment, hospitable people, and attractions catering for adults and young people alike, in addition to world-class services that meet the highest international standards,” H.E. explained.

The Federal Tax Authority explained that tourists can recover taxes upon their departure from the UAE and at tax refund offices placed at exit ports around the country. Tourists can submit tax invoices for their purchases from outlets registered in the Scheme, along with their passports and credit cards. No maximum amount was set for transferring refundable tax to a tourist’s credit card account. If the refund is requested in cash, however, the maximum amount of the day is AED 10,000.

Phase one of the Scheme went into effect on November 18, 2018, where eligible tourists can recover taxes incurred on their purchases at Abu Dhabi, Dubai, and Sharjah international airports. Preparations are underway for phase two of the Scheme, which goes into effect on December 16, 2018, allowing overseas tourists to reclaim taxes at all other UAE airports and land and sea ports that are taking part.

The Federal Tax Authority continues to organise workshops and awareness sessions in collaboration with the system operator to introduce retailers to the simplified procedures provided by the Authority to help retailers register in the system – the most advanced of its kind in the world. Cabinet Decision No. (41) of 2018 on Introducing the Tax Refunds for Tourists Scheme, along with the relevant FTA Decision, outlined accurate and transparent criteria for retailers to take part in the Scheme.

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The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: www.tax.gov.ae 

© Press Release 2018