Picture for illustrative purposes only. ARCHIVE

The UAE is set to become the first country to introduce VAT refunds for tourists on online shopping, paving the way for a groundbreaking development in global e-commerce. Tourists visiting the UAE will soon be eligible for a 5 percent Value Added Tax (VAT) refund on purchases made through online platforms like Amazon and Noon. This initiative is expected to enhance the shopping experience for visitors and boost the nation’s e-commerce sector. While the exact implementation date is yet to be announced, the scheme is part of the UAE’s ongoing efforts to solidify its status as a global shopping hub. The new refund policy will also apply to online stores of major brands operating within the country. “Tourists will no longer be restricted to in-store purchases to avail VAT refunds. This is a first-of-its-kind initiative globally,” an insider familiar with the development told Expat Media. The move aligns with the UAE’s strategic goals of encouraging tourism and digital economy growth. The country welcomed millions of tourists in 2023, with many drawn by its tax-free shopping benefits. Retail experts believe the scheme will create a ripple effect in the tourism and e-commerce sectors. “This policy will give tourists more purchasing power and encourage longer stays,” an industry analyst told Expat Media. The program is expected to integrate seamlessly with existing VAT refund systems, ensuring a user-friendly process for tourists. ICA/Expat Media
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