The Federal Tax Authority (FTA) has introduced a new app, Tourist Refund, which simplifies the process of claiming VAT refunds for tourists. With this app, tourists no longer need to keep physical receipts for their purchases as everything is recorded digitally. The app was launched at the ongoing Gitex Global exhibition in Dubai, and can be downloaded through FTA services provider firm Planet.
When a tourist makes a purchase from a store in the UAE, the merchant scans the invoice, and the information is stored in the app. The application will have details of each transaction and the amount of VAT that can be claimed upon leaving the country. Upon exiting the UAE, tourists can go to designated locations at the airport and present their invoices on the app to claim their refund in either cash or through a credit card transfer. This new automated process eliminates the need for standing in queues.
Zahra Al Dahmani, the director of the Taxpayer Services Department at FTA, mentioned during an interview with Khaleej Times at the Gitex Global exhibition that Dubai saw a 20% increase in international visitors in the first half of 2023, compared to the same period last year. These figures exceeded the pre-Covid-19 record of 8.36 million international visitors in the first half of 2019. Dubai’s booming tourism industry makes the Tourist Refund app a valuable addition for both visitors and the city’s economy.
Currently available on the Android platform, the Tourist Refund app will be accessible on Apple devices by the end of this year. Since the implementation of a five percent value-added tax (VAT) on consumer goods in 2018, tourists have been eligible to claim refunds upon exiting the UAE from ports, land borders, and airports.
Apart from the Tourist Refund app, the FTA is also highlighting its new app, Maskani, under the Emaratax Platform. Maskani facilitates the refund process for home construction-related expenses and has expedited the refund time from 20 working days to just five. Al Dahmani encouraged businesses to register for corporate tax, which was introduced in June 2023, emphasizing the importance of giving the FTA sufficient time to review applications.
With the launch of these innovative apps, the FTA aims to enhance the convenience and efficiency of tax-related processes for both residents and visitors in the UAE.
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