Enhanced VAT Rebate for Tourists: Latest Amendments Unveiled

Evaluating the Significance of FTA Decision no.2 of 2024 on the Evolution of VAT Refunds for Tourists

3/21/20242 min read

In a notable stride towards improving VAT refunds for tourists, the FTA has introduced Decision No. 2 of 2024, effective March 1, 2024. These revisions introduce essential alterations to purchase procedures, affecting retailers and international tourists alike. This blog post will explore the pivotal changes and illuminate their implications on the evolution of VAT refunds for tourists in the UAE.

The reinforced verification process bolsters the integrity of the VAT refunds for tourist scheme. The enhanced scheme prioritizes thorough verification to validate that individuals seeking VAT refunds are genuine overseas tourists physically present in the state at the time of purchase. Retailers are now required to perform comprehensive checks, either in-store or via electronic platforms. This rigorous verification procedure is designed to strengthen the reliability of the VAT refunds for tourist scheme.

Mandatory Precision: Recording Customer Details for VAT Refunds

In order to simplify the VAT Refund procedure, retailers must now accurately document customer information, essential for confirming the customer's status as an overseas tourist. This meticulous step is pivotal for maintaining precise records and ensuring a smooth VAT refund process for tourists.

Improved Documentation Procedure for VAT Refund Process

Another significant adjustment pertains to the issuance of necessary documents for VAT refunds. Retailers are mandated to follow precise guidelines outlined by the FTA to ensure timely provision of required paperwork to tourists. These documents are crucial in expediting the refund process for tourists before their departure

Procedures for Handling, Packaging, and Delivery

The Authority has established detailed protocols for retailers regarding the handling, packaging, and delivery of goods within the Tax Refunds for Tourist Scheme. Compliance with these protocols is vital to ensuring uniformity and effectiveness, thereby enhancing the experience for tourists utilizing the tax refund service.

Adherence to Agreements:

Retailers providing tax-free purchase services must adhere to any terms specified in the approved agreements. These agreements are crafted to guarantee that retailers maintain the highest standards when delivering tax refund services, ensuring a consistent and dependable experience for tourists across various retail outlets.

Restriction of Age:

One significant alteration introduced by Decision No. 2 is the prohibition of issuing VAT refund forms to customers under 18 years old. This adjustment aims to refine the eligibility criteria, aligning the scheme with a more mature and responsible audience while upholding the security and accountability of the tax refund process.

Decision No. 2 of 2024 by the Federal Tax Authority signifies a significant advancement in optimizing the VAT Refunds for Tourist Scheme. These amendments, effective from March 1, 2024, introduce a more robust verification process, streamlined procedures, and enhanced compliance measures. Retailers and overseas tourists are encouraged to acquaint themselves with these changes to ensure a seamless and efficient experience within the restructured framework of the VAT Refunds for Tourist Scheme.