FTA Launches New App for VAT Refunds, Eliminating the Need for Printed Receipts

The Federal Tax Authority (FTA) has introduced an innovative solution for claiming VAT refunds, allowing tourists to skip the hassle of keeping printed purchase receipts. The new Tourist Refund app, unveiled at the ongoing Gitex Global exhibition in Dubai, enables tourists to digitally record their purchases and easily claim refunds when leaving the UAE.

“To use the app, tourists can download it through FTA services provider firm Planet,” stated Zahra Al Dahmani, Director of the Taxpayer Services Department at FTA. “When a tourist makes a purchase, the merchant scans the invoice, and the details are recorded in the app. The application will display all transaction information and the amount of VAT that is eligible for refund upon departure.”

To claim a refund, tourists simply need to present their digital invoices at designated locations in the airport when leaving the UAE. The Tourist Refund app eliminates the need to stand in long queues, offering a fully automated and streamlined process.

Dubai has experienced significant growth in international tourism, with a 20% increase in visitor arrivals during the first half of 2023 compared to the same period last year. To accommodate this rise in visitors, the Tourist Refund app has been launched on the Android platform and will soon be available for Apple devices as well.

In 2018, the UAE implemented a 5% value-added tax (VAT) on consumer goods. However, tourists are entitled to claim a refund when exiting the country through ports, land borders, and airports. The FTA is also showcasing its new app, known as Emaratax Platform, which provides various services for taxable individuals, tax agents, and UAE residents seeking refunds related to home construction.

“The Maskani app, part of the Emaratax Platform, has significantly expedited the refund process, reducing the waiting time from 20 working days to just five,” explained Al Dahmani. She also urged companies to register for corporate tax, which was introduced in June 2023, emphasizing the importance of allowing sufficient time for application reviews.

The launch of the Tourist Refund app and the continued expansion of the FTA’s digital services signify the UAE’s commitment to enhancing the experience of tourists and facilitating efficient tax processes. As Dubai continues to attract a growing number of international visitors, these technological advancements are expected to further boost the tourism sector and contribute to the country’s overall economic growth.

Article Source: Khaleej Times