A new world first tax refund system for tourists doing online shopping has been introduced in UAE

The Federal Tax Authority of the United Arab Emirates has launched a brand-new, "world first" tax refund scheme for travelers who shop online.

A new paperless system that the authority has implemented will make it simple for customers to receive a VAT refund for any retail e-commerce purchases.

For visitors to Dubai and the other United Arab Emirates who enjoy shopping online while there, this is fantastic news.

Since 2018, the UAE has imposed a five percent VAT rate on all purchases. Tourists were only eligible for VAT refunds for purchases made in physical stores up until this point.

 Under the new scheme, tourists who shop online will now be eligible for VAT refunds.

Travelers may now effortlessly scan their passports, complete transactions, and share them instantly as digital invoices thanks to the newly improved system.

After that, travelers can use the shoppers' portal to check their bills and receive a prompt, entirely digital VAT refund for qualified purchases.

From the time of purchase until the refund is finalized when the traveler leaves the country, the VAT refund procedures are handled easily, swiftly, and effectively.

The new system was introduced in partnership with Planet, the system's authorized operator for VAT refunds.

Prior to their purchases being sent, visitors to the United Arab Emirates can claim for VAT refunds directly through e-commerce sites that are registered with the FTA.

They can accomplish this by supplying the specifics of their travel documents and pertinent personal data to confirm their eligibility at the point of sale.

Following identification verification of the visitor during delivery or online order fulfillment, the VAT refund registration is finished.