VAT refund for tourists to open doors for further growth

Tourists visiting the UAE will be entitled to claim back any Value Added Tax (VAT) payments they are charged. “The UAE has become a regional magnet for foreign investors and tourists, and the move to refund VAT yet again shows UAE’s strategic ability to drive the growth of the country,” said Tejas Goenka, Executive Director, Tally Solutions. Since the launch of VAT, thousands of businesses in the UAE have been using Tally’s software to comply with VAT regulations. The UAE’s Federal Tax Authority (FTA) is also working on an advanced integrated digital system to set up a direct connection with points of sale as well as with all UAE ports of entry, allowing the global operator to coordinate among retailers registered with the FTA and enable tourists to submit refund requests for their purchases.
“Internationally, most countries that implement VAT have an online robust system connecting multiple refund agencies and retailers on a single platform, offering tourists a seamless and hassle-free experience while verifying, processing and disbursing the tax refunds. We are confident that the new digital system to be implemented by FTA will be at par with international standards, offering tourists and retailers easy access to claim and release refunds. Since the launch of VAT, thousands of small companies in the UAE have switched to digital platforms from manual systems, demonstrating the country’s global competitiveness,” added Tejas.
While the UAE’s decision to refund value-added tax (VAT) will boost tourism, it will serve as a buoyant force for the MiCE industry as well according to Tejas.