How to Claim VAT Refunds in the UAE (2025 Guide for Tourists & Businesses)

The UAE is not just an international tourist attraction and business center, but also an extremely tax-effective nation in the world. Of course, there is a 5% Value Added Tax (VAT) imposed on most goods and services here.  

The silver lining? Tourists and businesses alike can reclaim VAT under certain circumstances. This guide covers all you need to know regarding how to reclaim VAT in Dubai and throughout the Emirates, including new regulations for UAE VAT refund for 2025, if you're a tourist making purchases of luxury goods or a business covering operation costs.

What is VAT and How Do You Claim Refunds?

‍Value Added Tax (VAT) was launched in the UAE in 2018 at a rate of 5%. It is charged on most goods and services—think mobile phones, clothing, food, even professional services. While consumers usually pay VAT as part of the bill, the UAE permits both tourists and qualifying businesses to recover VAT on qualifying purchases.

For tourists, this refund is a financial perk when shopping in the country. For businesses, it is a financial necessity to reclaim input VAT incurred while running day-to-day operations. With the 2025 UAE VAT refund system being more digitized and accessible than ever, understanding how to file for a refund is crucial to make the most of your time—or money—in the Emirates.

Tourist VAT Refund UAE: What Visitors Need to Know

‍Visitors to the UAE can claim VAT refunds on qualifying items bought during their visit. The catch is that the goods must be exported—that is, removed from the UAE within 90 days of the original purchase date. Services like hotel accommodations and dining at restaurants are not eligible under this program.

In order to be eligible for a tourist VAT refund in the UAE, you have to be a non-resident traveler and shop at stores licensed with the "Planet Tax Free" program. The majority of malls and main shopping centers in the UAE operate this scheme, so it is straightforward to find participating outlets. Pay attention to "Tax-Free Shopping" signs and always request a refund tag at the point of purchase.

How the Tourist VAT Refund Process Operates

‍It is a simple process. After you purchase something at a participating retailer, they'll apply a digital or printed VAT refund sticker to your receipt. At the time you are ready to leave the country, go to a Planet Tax Free kiosk at the airport or border crossing. You'll scan your passport, boarding pass, and receipts tagged at the automated kiosks or customer service desks.

You have the option of taking your refund in cash or crediting it to your card. Please be aware that cash refunds are limited in value, typically up to AED 10,000—and an administrative charge is taken out of the amount. The minimum spending needed per invoice to qualify for a refund is AED 250.

For a hassle-free process, make sure you have your receipts in order and arrive at the airport early enough to facilitate the refund before you board your flight. Also, ensure the goods for which you are requesting VAT are with you in case of an inspection if necessary.

Where to Access VAT Refund Services

‍The majority of international and regional airports throughout the UAE are provided with VAT refund counters or self-service kiosks. These include Dubai International Airport (DXB), Abu Dhabi International Airport (AUH), Sharjah International Airport, and others. Crossings by land such as Al Ghuwaifat and Hili also provide refund facilities for outgoing road passengers.

Business VAT Reclaim UAE: A Financial Necessity for Businesses

‍If you have a business in the UAE, VAT is not an expense on top of your costs, it is an economic factor that you can plan around. The biggest benefit for VAT-certified businesses is the recovery of input VAT. That means the VAT you pay on goods and services you buy for use in your business activities.

The UAE VAT reclaim process enables businesses to offset the VAT they have incurred on business expenses like rent, professional fees, advertising, and stationery. This can only be done by businesses that are fully VAT-certified and in compliance with UAE tax regulations.  

How Businesses Can Claim VAT in Dubai and Beyond

‍To recover VAT, companies are required to submit regular VAT returns, typically quarterly, through the Federal Tax Authority's (FTA) e-Services portal. When you have filed your return and it indicates a refundable value, you can then file a formal request for refund through the VAT311 form within the same portal. You will also need to attach supporting documentation such as valid tax invoices, payment proof, and a bank account validation letter.

The FTA usually processes these refunds within 20 working days, although it could take longer if additional documentation is needed. Once approved, the refund is directly transferred to your UAE bank account. There is no cap on the amount businesses can reclaim, but all expenses must be directly related to taxable activities.

Foreign Business and Special Refund Schemes

‍Not only UAE-based firms can seek VAT refunds. Foreign businesses too can seek VAT refunds on payments made in the UAE, provided certain conditions are met. This is generally done under the Foreign Business Refund Scheme, under which relief is granted to businesses not set up in the UAE and not making taxable supplies in the UAE.  

It also depends on whether the applicant's own country has reciprocal VAT refund arrangements in place for UAE businesses.

Further, UAE nationals constructing their own homes can get a complete VAT refund on building-related expenses. This should be filed within 12 months of the property's completion and involves strict documentation, such as invoices and proof of ownership.  

A second niche group consists of foreign organizations attending exhibitions or conferences within the UAE. Provided that they qualify according to FTA, these organizations can also recover VAT on selected expenses incurred during their stay.

Avoid Common Potholes When Submitting VAT Refunds

‍Although the UAE VAT refund process is relatively simple, applicants, particularly businesses, frequently make expensive blunders. These include the submission of forms that are not complete, the submission of invalid or absent documents, or trying to recover VAT on ineligible expenses such as personal items or entertainment.

For travelers, an easy error is to lose the original receipt or fail to stamp it at the airport. For companies, not accurately reconciling VAT records or failing to submit returns within time can cause delays, fines, or outright rejection of the refund request.

To prevent complications, always double-check the eligibility requirements and ensure all receipts and paperwork are properly organized. If unsure, seek advice from a certified tax professional or compliance specialist.

Maximizing Your UAE VAT Refund 2025

‍The key to an easy refund process—whether you're a visitor or business owner is planning ahead. Visitors must always ensure the retailer is enrolled in the VAT refund scheme and save receipts safely. Getting to the airport early can spare you of last-minute worries.

Companies need to aim at keeping accurate accounting records and submitting VAT returns in a timely manner. Frequent audits and liaison with VAT consultants can also make the process more efficient. Since business VAT reclaim in the UAE involves meticulousness, outsourcing this activity to professionals will not only save time but also maintain compliance.

Claim VAT in Dubai through Business Consultants

‍For companies seeking to streamline their tax strategy, business consultants provide end-to-end VAT advisory and refund support. From VAT filing and return submission to document validation and FTA coordination, they take the workload off your hands so that you can concentrate on developing your business.  

Whether you're in a mainland, free zone, or working remotely, they assist you in claiming VAT in Dubai correctly and efficiently.

This assistance also reaches foreign companies that are not familiar with UAE tax procedures. In case you are not certain about your eligibility or experiencing delays, Business consultants can assist you in getting clarity and proceed with confidence.

Final Thoughts

‍The UAE remains a very desirable destination for leisure and business alike. With its VAT refund provision, the nation confirms that it remains a shopper's paradise and investor-friendly environment.  

As a tourist about to plan the next shopping spree or a business owner with complicated financial procedures to go through, the UAE VAT refund 2025 is programmed to return money to its rightful place—your wallet.

By knowing the process, taking best practices, and sidestepping common mistakes, claiming your VAT in the UAE can be as effortless and enjoyable an experience as possible. And if you do get stuck, there are professionals standing by to help you along the way.

FAQs

Do tourists qualify for a VAT refund on hotel accommodation or eating out?

No, only physical products bought and exported from the UAE qualify for a VAT refund.

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How many business days do businesses take to process VAT refunds?

20, but this could be longer depending on FTA review and documentation.

What is the minimum threshold of spending required to claim a tourist VAT refund in the UAE?

AED 250 per invoice.

Are VAT refunds given at all UAE airports?

Yes, most regional and international airports, such as Dubai and Abu Dhabi, have Planet Tax Free kiosks.

Can non-local companies without an office in the UAE recover VAT?

Yes, if they are eligible under the Foreign Business Refund Scheme and reciprocity is in place.

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com or WhatsApp & call us at +971 55 234 7124!

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