Rollout of tourist VAT refunds in UAE is smooth

dubai - Scheme is working smoothly at the UAE's three airports

The tourist VAT refund scheme has been rolled out successfully from Sunday and is working smoothly at the UAE's three airports, a senior official of the company managing the scheme said on Monday.

"The launch was smooth at all three airports from 7am on Sunday, November 18. All is going good and there has been no complaints," said Eyad Al Kourdi, general manager, Planet, the company appointed by the Federal Tax Authority to operate the tourist VAT refund scheme.

He, however, refused to disclose the number of people who had applied for VAT refunds on the first day.

Dubai Airports also confirmed on Sunday that the tourist refund scheme has been introduced at the airport.

In the first phase, the refund scheme has been launched at Dubai, Abu Dhabi and Sharjah airports. In the second stage, this scheme will be introduced at other airports, ports and borders of the country from December 16.

Under this refund scheme, a tourist can claim VAT on purchases made in the country. But goods and items consumed in the country will not be applicable under the scheme.

Mayank Sawhney, partner, Crowe, said the main reason for the successful launch is that the same system is in place in European countries.

"Planet has a tried and tested system and module. Therefore, there were no technical glitches. They had done a few demos prior to the system launch."

Sawhney noted that the successful launch of the refund scheme will encourage retailers who were earlier apprehensive to register. Secondly, it will also encourage tourists - especially high-spending ones - to shop more as they know the system is working correctly and they can claim a VAT refund while leaving the country.

- waheedabbas@khaleejtimes.com