Picture for illustrative purposes only. ARCHIVE

The UAE has cemented its position as a global leader in innovation with the launch of the world’s first VAT refund system for tourist e-commerce purchases. The Federal Tax Authority (FTA) unveiled the initiative to streamline VAT refunds for tourists buying from registered online platforms. Khalid Ali Al Bustani, Director-General of the FTA, hailed the move as a milestone in digital transformation. “This system is a testament to the UAE’s commitment to providing a seamless shopping experience for tourists. It ensures efficiency and compliance with tax legislation,” he stated. The new system allows tourists to scan their passports, complete purchases, and receive VAT refunds via a fully digital platform. Tourists can verify their invoices through an online portal, simplifying the refund process. “We aim to enhance the tourist experience by leveraging technology to offer fast, paperless VAT refund procedures,” said Al Bustani. This initiative builds on the success of the existing VAT refund system, launched two years ago. To qualify, tourists must shop on e-commerce platforms registered with the FTA and provide their travel document details during purchases. Refunds are processed upon identity verification during delivery or order fulfillment. Industry experts have lauded the UAE’s initiative. “This system sets a global benchmark for digital tax refunds and enhances the UAE’s attractiveness as a tourist destination,” said Faisal Ahmed, an e-commerce analyst. The system also supports the UAE’s broader goals of fostering innovation and economic growth. Retailers, too, stand to benefit from increased tourist spending and simplified tax compliance. ICA/Expat Media
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