What is Tax Free Shopping?

The UAE Federal Tax Authority introduced a VAT of 5% in January 2018, and will launch Tax Free Shopping in Q4 2018.

Tax Free shopping is the purchasing of goods in the UAE which will be exported (subject to terms and conditions) whereby shoppers can obtain a refund on the VAT on these items, providing that they validate their purchases according to local rules.

Who is eligible?

“Overseas tourist” means any natural Person who is not resident in any of the Implementing States and who is not a crew member on a flight or aircraft leaving an Implementing State. Therefore under the current rules, GCC Nationals are eligible.

  • 100% digital
  • No paper required
  • 250 dirhams minimum spend
  • All done at point of sale in 2 minutes

How the system works

What is the benefit to the store?

Tax Free shopping will increase your share of

international traveller spend.

What the tourist has to do

  • 1.

    The tourist takes goods and tagged receipt to the airport, seaport or border crossing.

  • 2.

    The tourist goes to a Planet validation point: For airports, this is before checking in and going through security.

  • 3.

    Once validated, the tourist chooses a refund method. (Please note that the tourist may be subjected to a further validation check and may need to produce the goods for inspection.)

  • 4.

    Planet processes the refund.

How much does the tourist get back

The tourist will receive 85% of the total VAT amount paid, minus an admin fee of 4.80 dirhams per Tax Free form.

What does it cost to you?

There are no start-up, subscription or license fees, or upfront hardware costs. You will be invoiced monthly for the total VAT, and you can adjust your VAT return to effectively recover the VAT amount refunded. We will provide you with a smartphone with the app pre-loaded, QR code tags, Point of Sale material, and training for your  staff.

   The Tax Free process

a. Card refund

  • Go to validation point
  • Get validated
  • Get card refund

b.Cash refund

  • Go to validation point
  • Get validated
  • Go to refund point
  • Get cash refund*

*Subject to a maximum of 10,000 AED

c.Self-validation via kiosk

  • Go to self-service kiosk
  • Get validated
  • Collect refund