UAE Expands VAT Refund Service to Online Shopping

The United Arab Emirates (UAE) already allowed tourists to claim VAT refunds on in-store purchases made at registered retail outlets. However, last year, the Federal Tax Authority (FTA) announced a major expansion of this service to cover online transactions as well.

Digital Transformation in VAT Refunds

Through collaborations between the FTA and various e-commerce platforms, tourists can now verify their identity during checkout and submit VAT refund claims directly online. Verification may also be completed upon delivery of the order.

FTA Director-General Khalid Ali Al Bustani highlighted that the system offers tourists a wider shopping range while ensuring that the entire process — from purchase to refund — is digitally managed and securely tracked.

The authority confirmed it is ready to collaborate with additional e-commerce platforms, provided they comply with buyer verification and data integrity standards.

UAE’s “Zero Bureaucracy” Agenda and Digital Advancements

The FTA has adopted 100 new digital initiatives as part of its “Zero Digital Bureaucracy” program, designed to simplify administrative processes and accelerate digital transformation. These initiatives aim to make the “EmaraTax” digital tax platform more efficient, user-friendly, and accessible for businesses and individuals.

During the first phase, 64 processes were fully implemented, while over 100 digital procedures were approved in total. The second phase will prioritize artificial intelligence applications, process automation, and deeper integration with private-sector systems.

In 2024 alone, the FTA refunded approximately AED 2.9 billion in VAT to 35,000 UAE nationals for expenses related to the construction of new residences. Moreover, the number of affiliated retail stores authorized to process tourist VAT refunds has surpassed 17,900 nationwide.

Implementation and Conditions

Under the new framework, tourists are eligible to request VAT refunds on their online purchases, subject to specific conditions:

• The platform must be registered and approved by the FTA.
• The tourist must be over 18 years old and not a UAE resident.
• Purchased goods must qualify under the VAT refund scheme and be eligible for export.
• Purchases must be verified within 90 days of the date of departure.
• A small administrative fee applies to each refund transaction.

This groundbreaking move strengthens both the UAE’s tourism and e-commerce sectors, reinforcing its vision to lead in digital governance and customer experience. The continued enhancement of its tax infrastructure is positioning the UAE as a global model for efficient, transparent, and technology-driven public services.

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