VAT Refund Dubai and UAE: Your Complete Local Guide

Introduction

Whether you’re a traveller heading home after shopping in Dubai or a business navigating VAT obligations in the UAE, the prospect of getting a VAT refund can feel a bit puzzling. 

The good news? The UAE provides clear mechanisms for eligible taxpayers — including tourists and businesses — to recover VAT paid on certain expenses, helping to improve cash flow and reduce tax leakage.

In this thorough guide, we’ll walk you through everything you need to know about VAT refunds in Dubai and across the UAE — from eligibility and the claim process to updated rules and practical tips. 

Along the way, we’ll also highlight how getting support from Fintrack Tax Consultants LLC can make the refund process easier and more accurate.

What Is a VAT Refund in the UAE?

A VAT refund is a reimbursement of Value Added Tax paid on certain goods or services, which the UAE Federal Tax Authority (FTA) allows under specific conditions. The most recognised refund schemes include:

• Tourist VAT Refund – for non-resident visitors leaving the UAE.
  

• Business VAT Refund – for VAT-registered businesses with excess VAT credits or foreign enterprises meeting specific criteria.
  

• Special Refunds – for categories such as Emirati nationals building their own homes.
  

The VAT refund process varies depending on who you are and why you’re claiming. We’ll unpack that next.

VAT Refund for Tourists: How It Works

If you’re visiting the UAE and planning to shop, you can get back most of the VAT you pay on eligible purchases — but there are conditions:

• You must be a non-resident tourist, aged 18 or above, and exporting goods within 90 days of purchase.
  

• You typically need a minimum spend of AED 250 in one purchase at a retailer registered under the tourist refund scheme.
  

• Goods must be unused and carried with you when you leave the UAE.
  

• Refunds are usually processed by Planet Tax Free kiosks or counters before departure.
  

At the airport or exit point, you present your passport, boarding pass, tax-free invoices, and goods (if requested). After verification, you can choose how to receive your refund — cash, card, or digital wallet depending on the service used.

VAT Refund for Businesses and Other Entities

The UAE VAT system also provides mechanisms for businesses to recover eligible VAT. Key points include:

• VAT-registered businesses in the UAE can apply to reclaim excess VAT credits through their VAT returns or specialised refund claims.
  

• Foreign businesses that are not established in the UAE but meet specific conditions may also request VAT refunds under the “Business Visitors Refund” scheme, subject to documentation and eligibility rules.
  

• Emirati nationals building their own homes may claim VAT back on eligible construction costs, though documentation requirements apply.
  

Each of these refund types has its own forms, requirements, and time limits, so understanding which category applies to you is crucial.

Updated VAT Refund Rules (2026)

Important changes to the UAE VAT regime took effect from 1 January 2026 that directly impact refund claims:

New Time Limit for VAT Refund Claims

Under amendments to the Tax Procedures Law, all VAT refund claims must now be filed within five years from the end of the tax period when the credit balance arose. If you miss this deadline, your right to claim could expire.

Transitional Relief

For historic VAT credit balances that pre-date this amendment, there may be a transitional grace period allowing claims that would otherwise have expired. This helps businesses recover older credits within a defined window.

These changes underscore the importance of timely submission and accurate planning, especially for businesses with fluctuating VAT positions.

Common VAT Refund Scenarios in Dubai & UAE

Here’s a quick summary of common VAT refund situations:

Note: The specific forms and documents vary by case and must be submitted via the Federal Tax Authority’s EmaraTax platform or through authorised agents.

Practical Steps to Claim a VAT Refund

For Tourists

1. Ask for a tax-free invoice at the store when you pay.
   

2. Ensure the invoice is linked to your passport (Planet issues a tax-free tag).
   

3. At departure points like Dubai or Abu Dhabi Airport, validate purchases at Planet kiosks or counters.
   

4. Choose how you want the refund — cash, card, or digital wallet.
   

5. Keep proof of validation and follow up if needed.
   

For Businesses

1. Ensure your VAT registration and accounts are up to date.
   

2. Compile eligible invoices showing VAT paid on business purchases.
   

3. File refund claims via the FTA portal or VAT return forms (e.g., VAT311).
   

4. Work with tax professionals to ensure all requirements are met and deadlines are respected.
   

Tips for Better VAT Refund Outcomes

• Plan ahead — especially if you’re a business with significant VAT credits.
  

• Keep organised records of all invoices, bank details, and documentation.
  

• Verify eligibility early — not all goods or services qualify, especially services or consumed items.
  

• Work with specialists who understand both FTA rules and practical submission requirements.
  

This is where consulting with experienced VAT advisors like Fintrack Tax Consultants LLC can help turn complicated procedures into straightforward, optimised claims — especially for businesses where VAT recovery directly impacts cash flow and compliance.

Frequently Asked Questions (FAQs)

1. Who qualifies for a VAT refund in Dubai and the UAE?
Tourists visiting the UAE and eligible VAT-registered businesses or entities can claim refunds under applicable schemes.

2. How much VAT can tourists get back?
Typically around 85 % of the VAT paid on eligible goods after deducting service fees.

3. Is there a minimum spend to claim a VAT refund?
Yes — transactions usually need to be AED 250 or more at participating retailers.

4. What documents are needed for a VAT refund for tourists?
Valid passport, tax-free invoices, tax-free tags, and sometimes boarding pass or travel document.

5. Can businesses recover VAT paid on imports?
Yes — eligible UAE VAT-registered businesses can reclaim input VAT under proper documentation and forms.

6. When do you need to validate purchases for a tourist VAT refund?
Validation must occur at departure points like airports or land borders before leaving the country.

7. Is there a time limit to claim VAT refunds for businesses?
Yes — from 2026, claims must be submitted within five years from the end of the relevant tax period.

8. Can VAT refunds be claimed for services?
Generally, no — the tourist VAT refund applies to physical goods only.

9. How long does it take to receive a VAT refund?
For tourists, card refunds take about 7–10 business days; cash refunds are immediate at counters.

10. Can online purchases qualify?
Only if the merchant participates in the refund scheme and the purchase meets export and documentation requirements.

11. Are VAT refunds available outside the UAE?
No — refunds must be validated at exit points within the UAE before departure.

12. Do VAT-registered businesses need help to file refund claims?
Many businesses benefit from professional guidance to ensure accuracy and compliance with deadlines.

Conclusion

Whether you’re exploring Dubai’s world-class malls as a visitor or operating a business with cross-border transactions, understanding how VAT refunds work is vital. 

The UAE’s system is designed to be transparent, but the requirements — especially after recent updates — can be complex.

Planning ahead, adhering to timelines, and working with experienced tax consultants can make all the difference in maximising your refund while staying compliant.