The UAE Cabinet has announced a new decision on implementing the VAT refund system for tourists. The new decision will integrate retail outlets with tax refund points, and this is in-line with the efforts by the government to achieve good tax implementation system in the UAE.
A press statement revealed that the new tax refund system promotes growth of tourism in the UAE, and helps in maintaining its status as the global destination for tourists.
The new system would get effective towards the fourth quarter of 2018, and would be done with the support of an international specialized company in tax recovery services.
The non-resident tourists may refund VAT on purchases made at participating retailers, provided, the goods are not exempted from the tax system, through designated refund outlets.
The tourism sector contributes immensely to the local economy, as the number of travellers through UAE airports touched 123 million passengers last year. The tourism sector also contributed 11.3 percent to the country’s GDP last year, equivalent to Dh.154.1bn.