How To Claim Vat Refund In UAE For Tourist in 2025

UAE is also called a Tax free planet and one of the reasons why tourists prefer to visit cities like Dubai in UAE is it being tax-free. But, wait UAE does have the 5% VAT on all the purchases but why do we call it Tax free? 

Because the UAE government offers a refund of the 5% VAT ( some part of it ) to the tourists in UAE. However, there is a process to follow in order to get the refund. 

To claim the VAT refund in UAE, you must be a tourist and we will share some of the eligible purchases here in UAE, for which you can claim the VAT refund. 

What is the VAT & Tax In UAE

UAE has very low tax as compared to the rest of the world. The country only has VAT which is only 5% on almost all products and services in the country.

Although there are multiple VAT-free products and services as well. 

Corporate tax is a maximum of 9% but that is something a tourist or individual should not worry about, but if you are a business owner, then you should learn more about the Corporate Tax in UAE from our expert CA, Dilip Khatri. 

Non Refundable VAT Purchases in UAE ( Dubai )

Not all the purchases one makes are eligible for the VAT refund. Such as some of the non-refundable purchases are : 

• Services and Goods used in UAE or any of the Emirates.
• Goods bought from e-commerce sites or online. 
• Boats, Aircraft and any other vehicles (including cars).

Who Is Eligible for a VAT Refund on purchases in UAE 

• Person aged 18 or older.
• Person who is not a resident or citizen.
• Shopper who bought eligible product or service higher than 250 AED
• Person who brings/shows the purchased goods with a ‘Planet Tax Free’ tag on the bill, can get the refund while exiting the UAE from any of the Emirates such as Dubai and Sharjah 
• Bill should not be older than 90 days from the date of purchase while claiming the Vat refund in UAE.

How much Vat is refundable in UAE 

For the tourist who is eligible can get the Vat refund as they leave the country. A person will get around 85% of Vat paid while purchasing the product. Planet Tax Free deducts 4.80 AED per tag while refunding the Vat to a person. 

How To Get Vat Refund in UAE 

Remember while in the markets of Dubai, you see the green colour “Tax Free Planet” tags on the shop’s door?

So, basically The Federal Tax Authority is responsible for the Tax and Vat related work in UAE, but the authorities have appointed Planet as the responsible authority to refund the Vat in the exit point of the UAE such as Airports and Ports.

What is required to Claim Vat Refund in UAE 

In order to claim the Vat refund in UAE, you need to take part in the VAT Refund scheme while buying the product from the authorised shop in UAE. 

When you buy, the shop will give you a bill and stamp the tag of “Vat Free Planet” on the bill and this is enough to claim the Vat while being exited from the UAE.

Do carry the product with you to show on the counter of the Planet Tax.

Apart from this, you need the Passport to show at the counter and they will ask you how you would like to receive the refunded amount. 

In most of the cases, the counter offers a refund on credit or debit card, you must have a Visa or Master card to claim the refund. Additionally, on some occasions, you might get the cash refund at the counter too. But, chances of a cash refund are quite low, you can still ask them if needed.