UAE sees 3,800 VAT refund transactions daily

DUBAI - This makes for seamless tourism operations at the UAE's ports of entry.

The number of retail outlets linked to the VAT refund scheme has reached 6,903 with 3,800 digital transactions on average being processed everyday, the Federal Tax Authority (FTA) said on Monday.

"The results of the operating system for tax refunds for tourists scheme underline how the scheme is functioning with high efficiency. This, in turn, makes for seamless tourism operations at the UAE's ports of entry," said Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, UAE Minister of Finance and Industry, and FTA chairman.

The average total amount of refunds processed every day totalled Dh925,187. "The scheme is estimated to be processing 3,800 transactions every day - a significant number considering the scheme is still in its first phase," added Sheikh Hamdan.

According to Federal Decree-Law No. (8) of 2017 on VAT, as well as the conditions, constraints and procedures outlined in the Law's Executive Regulations, any tax incurred on a supply or import made by a non-taxable person conducting business but not residing in the UAE (or any other country implementing VAT) shall be refunded to the said person.

The refunds scheme for visiting foreign businesses relies on reciprocity, whereby the Authority collaborates with countries that refund VAT for UAE businesses visiting their territories, facilitating tax refunds for businesses coming to the UAE from these countries.

- waheedabbas@khaleejtimes.com