Tax Refund (VAT) Claim in Dubai, UAE for Tourists

By | August 18, 2024
Dubai Tax refund (VAT) Claim

Claiming tax refunds on purchases made in a foreign country is one way to save money while shopping abroad. However, I generally ignore it because I don’t usually make big purchases, and even when I do, filling out forms can be a hassle.

But during my recent trip to Dubai, I gave it a try, and it was an extremely smooth experience. Here’s everything you need to know:

How it works?

“Planet” Tax Free is the service authorized by the UAE government to operate the Tourist Refund Scheme. There are basically two steps to it:

  1. At Merchant: While shopping, you’ll need to mention that you’re looking for a VAT refund. The merchant will ask for your passport and give you a slip.
  2. At Airport: You can claim the VAT through automated kiosks or manually at the Planet Payment counters located both airside and landside.

Terms & conditions:

  • A fee of AED 4.80 per tag would be charged
  • Minimum spend: 250 Dirhams
  • Goods that are consumed partially or fully are not eligible.
  • Goods not accompanied by tourist while leaving UAE are ineligible.

Merchant Experience

While at the billing counter, the merchant asked for my passport and fortunately accepted my digital copy. It took him a few minutes to go through the process, and then he gave me a receipt that showed the VAT amount that I can claim.

Airport Experience

As soon as I entered the DXB airport – Terminal 1, I noticed the Planet Payment’s counter (landside) which was fortunately empty at that time.

The executive asked for my passport and flight details. He quickly punched in my passport number on his handheld tablet and said it was already approved. Then, he took my credit card number to initiate the refund and said it was done.

The whole process took hardly 5 minutes.

However, someone else I know missed this counter and went to the airside counter. He had some five items and was asked to show them, which, of course, was not possible as they were in the checked-in luggage. So he was not given the refund for one of the items, which I think is a fair decision.

In short, I understood that when you have fewer products, the system auto-approves it, while it might trigger a manual check when you have multiple items.

Refund

Refund kicked in about 3 days directly to my credit card and their website is useful to understand the fee charged, etc.

Tax Refund Dashboard UAE
Tax Refund details UAE
Tax Refund to card

While it’s a small amount due to a minor purchase and the fact that VAT is only 5% in the UAE, it could amount to few thousands if it were a European country.

Bottomline

The tax (VAT) refund process in the UAE is entirely digital and very user-friendly compared to some other countries that still use paper processes.

For example, when I previously tried to visit the tax refund counter in Dublin, Ireland, the queue and rush in the area made me not even bother spending time on it.

Interestingly, “Planet” is actually based out of Galway, Ireland. It’s a bit weird that I didn’t find them when I was in Ireland. Not to mention, they operate in many more countries worldwide.

Do you have the habit of claiming Tax Refunds while purchasing goods in a foreign country? Feel free to share your experiences in the comments below.

Author: Siddharth

Helping Indians choose the right credit cards, find the best offers, and enjoy luxury vacations for less using credit card rewards.

11 thoughts on “Tax Refund (VAT) Claim in Dubai, UAE for Tourists

  1. balaji

    Thanks for this excellent article. Many are not aware of this and lose money. Is the process similar for other countries too ?

    Reply
    1. Siddharth Post author

      In most countries we would need to fill up a form and attach the purchase slips and it would take a week or two for refunds to kick-in. Only in few countries it’s all digital like Dubai.

      Reply
  2. Bibhash

    From where do you need to buy the item? Can you buy in any mall and get the vat refund or just in airport shops?

    Also, do you know if it will work for online shopping?

    Reply
    1. Siddharth Post author

      Outlet mall, not in airport. Stores in most malls have the option.

      Works only offline for obvious reasons AFAIK.

      Reply
  3. Praveen Katiyar

    Hello Sid,
    As usual a very informative and well written article.

    Best wishes.

    Reply
  4. Joseph Sashi

    Thanks a lot Sid bro for helping me out getting tax refund claim process in future. I usually travel to Dubai but I’m unaware of this. Thanks b/w now it will help me out to find reasons to claim with Planet tax free process. Your article is not only attractive but really useful for everyone who read this. Long live 💳expert. Keep sharing & get blessings. 🤗

    Reply
  5. Akshay

    Please also note that if you make a purchase of more than 250 AED, ask the shop to add the vat refund sticker at the back of your bill. Most stores do not do it by default. And yes for big ticket purchases you need to show them the item.

    Reply
  6. Vivek

    Had gone through this process back in 2019, and it was the same seamless process then too. In my case, it was a mobile phone, and the landside counter did ask to show the product.

    Refund was seamless and got credited to my card in a couple of days.

    Reply
  7. Maheshwar V

    This “claiming tax refund” was also fully automated in Seoul through an ATM like kiosk.
    In Japan, you only pay the tax free amount while purchasing goods with your tourist visa. At the airport, you are expected to show the bills and the (unused) goods if checked, but no one asked in my trips.

    Reply

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