UAE approves VAT refund scheme for tourists

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Tourists visiting the United Arab Emirates will be able to apply for a refund on the 5% VAT (value-added tax) when exiting the country from the beginning of the fourth quarter of 2018. The UAE Ministry announced the rebate would be offered on goods purchased from “participating retailers” as part of a plan to encourage increased tourism. The new tax refund system aims to support the growth of the tourism sector in the UAE and retain its position as a global destination for tourists, according to media reports in the United Arab Emirates. At this stage, the name of the contractor who will operate the VAT refund scheme is yet to be announced, with the UAE Ministry only referring to a “specialised company in tax recovery services.” The refund system will only be eligible to those travelling to the UAE from outside Gulf Cooperation Council (GCC) countries.   Lead image – What’s On Dubai, Dubai Airport.

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