VAT Refund for Tourists in UAE (2026): Rules, Fees & Guide

Last updated 10 July 2026 · Based on FTA Decision No. 2 of 2018 as amended by Decision No. 11 of 2026 (effective 12 July 2026) · Reviewed by Credora Consultancy LLC, FTA Registered Tax Agent

Tourists visiting the UAE can reclaim most of the 5% VAT paid on eligible purchases through the Tax Refunds for Tourists Scheme. Under the current rules, the refund is calculated from the VAT paid, less a 13% administrative fee and a fixed fee of AED 3.6 per refund claim from 12 July 2026. The purchase must be at least AED 250 including VAT from a participating retailer, and the goods must be exported outside the UAE within 90 days. This guide explains the updated fee, the estimated refund at different spending levels, and the steps from requesting a tax-free transaction at the store to validating the purchase before departure.

What Changed on 12 July 2026: The Refund Fee Dropped to AED 3.6

On 1 July 2026, the Federal Tax Authority issued Decision No. 11 of 2026, which reduces the fixed fee deducted from each tourist refund claim from AED 4.80 to AED 3.6. The change takes effect on 12 July 2026. Most guides online, and even some official service pages, still quote the old AED 4.80 figure, so if you are travelling after 12 July 2026, expect the lower fee.

The percentage side of the refund is unchanged: the administrative fee remains 13% of the VAT amount, which means you still receive 87% of the VAT you paid. The AED 3.6 is a flat deduction applied once per refund claim on top of that. For a tourist making several tax-free purchases during a trip, the saving is small per claim but it applies to every claim processed under the Scheme.

The Scheme has been amended three times since launch. The table below outlines the major amendments to the Tourist Refund Scheme since its introduction:

What Is the UAE Tourist Refund Scheme?

The Tax Refunds for Tourists Scheme is the official system that lets overseas visitors reclaim VAT paid on goods they buy in the UAE and take home. It was introduced by Cabinet Decision No. 41 of 2018 under the UAE VAT law (Federal Decree-Law No. 8 of 2017) and implemented through FTA Decision No. 2 of 2018. The Federal Tax Authority sets the rules, and Planet operates the system exclusively on the FTA’s behalf, covering in-store tagging, exit-point validation and refund payment.

The process is fully digital. When you make a qualifying purchase, the retailer records your travel document details in Planet’s system and either affixes a tax-free tag to your invoice or issues a fully digital transaction. At departure, you validate the purchases at a Planet desk or self-service kiosk before checking in your luggage, then choose cash or card for the refund. The UAE was also the first country in the world to extend tourist VAT refunds to e-commerce purchases, live since December 2024.

Who Is Eligible for a Tourist VAT Refund?

You qualify as an Overseas Tourist under Clause 3 of Article 68 of Cabinet Decision No. 52 of 2017 if all of the following are true:

• You are not a resident of the UAE or another Implementing State, and you are visiting the country.
• You are 18 years of age or older. Retailers are prohibited from issuing refund forms to anyone under 18.
• You are not a crew member of a flight or ship departing the UAE.
• You were physically present in the UAE at the time of purchase, either in the store or ordering from your own account on a registered e-commerce platform and receiving the goods yourself.
• You will export the goods, in your possession, within 90 days of the date of supply.

UAE residents are not eligible, regardless of nationality, and neither are residents of other GCC states that implement VAT. Two separate FTA refund schemes exist for other situations: UAE nationals can reclaim VAT on the construction of new residences, and eligible foreign businesses can reclaim UAE VAT annually through the Business Visitors scheme. Both run through EmaraTax rather than the airport system. If either applies to you, our guide to accessing EmaraTax with UAE PASS covers the login side.

How Much VAT Do You Get Back? The Exact Formula

UAE prices are quoted inclusive of 5% VAT, so the VAT inside any price is the price multiplied by 5/105 (about 4.76% of what you paid). The refund is then 87% of that VAT, minus AED 3.6 per claim. As a single formula:

Here is what that produces at common spending levels, using the AED 3.6 fee that applies from 12 July 2026:

The pattern to remember: the bigger the purchase, the closer your refund gets to about 4.14% of the price, because the flat AED 3.6 fee shrinks into irrelevance. On the AED 250 minimum, the fee eats a third of the refund; on jewellery, watches or electronics, it is a rounding error.

Is the Refund 85% or 87%? Settling the Confusion

You will find both figures quoted online, sometimes on official pages. The discrepancy has a simple explanation: when the Scheme launched in 2018, the administrative fee was 15% of the VAT, so tourists received 85%. FTA Decision No. 9 of 2023 amended Article 4 and set the fee at 13%, so the correct figure since July 2023 is 87% of the VAT, minus the fixed per-claim fee. Pages quoting 85% are citing the pre-2023 rules; Planet’s own tourist portal confirms 87%.

Combined with the fee cut in Decision No. 11 of 2026, the Scheme in July 2026 is the most generous it has ever been: 87% of VAT and only AED 3.6 deducted per claim.

Step 1: Request a Tax-Free Purchase at the Store

Shop at any retailer displaying the Planet Tax Free logo (around 19,000 stores were connected by the end of 2025). At the till, before paying, tell the cashier you want a tax-free purchase and present the original travel document you entered the UAE with: your passport, or GCC national ID if you entered on one. Copies and photos are not accepted, and the name on the invoice must match your travel document. The cashier scans your details into Planet’s system, and one of three things happens depending on the store:

• Paper invoice with tax-free tag: a sticker with your transaction reference is affixed to the back of the invoice. Keep both safe; you may need to present them at departure.
• Uploaded invoice: the store uploads an image of your invoice to Planet for verification. Track the status in Planet’s mobile app or Shopper Portal, and if verification fails, return to the store to fix it before you leave the country, or the claim is lost.
• Fully digital transaction: at merchants using Planet’s paperless POS solution, everything is linked to your passport digitally and no paper tag or original invoice needs to be shown at the exit point.

Two rules apply at this stage under Article 2 of the Decision: the purchase must total at least AED 250 including VAT from that retailer, and the refund documents must be requested within 90 days of the supply. Under-18s cannot be issued refund forms at all.

Step 2: Validate at Departure, Before You Check In Luggage

Validation is where most refunds are lost, so the sequence matters: go to Planet before you check in your bags, because staff may ask to physically see the goods. Under Article 3 of the Decision, the Operator cannot refund anything unless it verifies you are exporting the goods within 90 days of purchase. Present the following:

• Your original passport or GCC national ID (the same document used in the stores).
• Original tax invoices with tags affixed (not needed for fully digital transactions).
• The purchased goods themselves, unused and available for inspection.
• A valid ticket or confirmed booking showing your departure from the UAE.

Where to validate: Planet operates manned desks and self-service kiosks at every major exit point, including Dubai International, Abu Dhabi International, Sharjah International and other airports, plus land borders and sea ports. Airport desks generally run 24/7. Kiosks also exist in selected shopping malls and hotels, where you can validate in advance if you hold an online boarding pass showing departure within 24 hours.

One timing rule catches people out: once validated, you are expected to depart promptly, and if you do not leave within 6 hours of validation the approval is cancelled and you must repeat the process. Validation is also strictly personal; a travel companion cannot do it for you.

Step 3: Choose How You Get Paid

After validation you choose the refund method: cash in UAE dirhams at the exit point, or a credit or debit card refund. Cash is capped at AED 35,000 per tourist per 24 hours under Article 4; anything above that must go to a card. Card refunds typically arrive within several business days depending on your bank.

If you validated but did not collect, you are not out of luck: refunds on export-validated transactions can be claimed within one year from the date of export validation through Planet, so a rushed departure does not forfeit the money.

VAT Refunds on Online Shopping: A World First

Since December 2024, the UAE has been the first country in the world to refund VAT to tourists on e-commerce purchases. Article 2 of the amended Decision covers it directly: you qualify if you order from your personal account on an FTA-registered e-commerce platform while you are in the UAE, request the tax-free purchase at the time of ordering, and receive the goods yourself. Your passport details are captured at purchase and verified at delivery.

The same rules then apply as for in-store purchases: AED 250 minimum, export within 90 days, and validation at departure. Not every online retailer participates, so confirm the platform is registered under the Scheme before ordering if the refund matters to your decision.

What You Cannot Claim: Excluded Goods and Services

Article 6 of the Decision excludes three categories of goods outright:

• Goods not accompanying you when you leave: items shipped separately by cargo, courier or post do not qualify. The goods must physically travel with you.
• Goods consumed in the UAE, fully or partly: opened perfume, worn clothing, eaten food. If it has been used, the claim can be rejected at validation.
• Motor vehicles, boats and aircraft: excluded entirely, regardless of value.

Services are outside the Scheme by definition, because it refunds VAT on exported goods only: hotel stays, restaurant meals, spa treatments, tours, taxis and event tickets carry VAT you cannot reclaim as a tourist. Gold, jewellery, watches, electronics, fashion and souvenirs are all fine, provided they leave the country with you in unused condition.

Important Deadlines for UAE Tourist VAT Refund Claims

For Retailers: Joining the Scheme and Staying Compliant

If you run a retail business in the UAE, participating in the Scheme is a direct sales advantage: tax-free shopping is a stated reason tourists choose where to spend, and about 19,000 stores are already connected. To join, your business must hold a valid VAT registration (TRN) with the Federal Tax Authority and then register with Planet as the Scheme operator, which includes agreeing to the purchase procedures in Article 2: verifying the customer is an eligible Overseas Tourist, recording their details correctly, issuing the refund documents, and following any handling and packaging rules the FTA sets for specific goods categories.

Compliance is equally important, because refund transactions flow into your VAT return and your records must survive an FTA audit. Credora Consultancy assists retailers with accounting and VAT record-keeping in Dubai, VAT registration and return filing, and acting as your FTA registered tax agent for correspondence with the Authority. With e-invoicing arriving for UAE businesses, getting invoice data right at the point of sale is about to matter twice as much.

Credora Consultancy LLC is a Dubai-based, FTA Registered Tax Agent supporting retailers and businesses across the UAE with VAT registration, VAT return filing, tourist refund scheme compliance, tax advisory and audit readiness. For help connecting your store to the Tourist Refund Scheme or keeping your VAT records compliant, talk to our team. You may also find our guides on Tax Residency Certificates in the UAE, Transfer Pricing Services in Dubai, and Tax Services for ADGM Companies for additional UAE tax compliance guidance.