Hotel and Travel VAT Refund for Tourists

Introduction

The United Arab Emirates (UAE) is a major global travel destination known for luxury shopping, skyscrapers, and vibrant culture. To attract more international visitors, the Federal Tax Authority (FTA) offers a VAT refund scheme for tourists on eligible goods purchased during their stay — including hotel and travel-related VAT in specific circumstances.

Here, we’ll explore what types of VAT are refundable for tourists, which hotel and travel expenses are excluded, and how to claim your refund at departure points like airports, ports, and borders.

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🧾 What Is the Tourist VAT Refund Scheme?

Launched in November 2018 and operated by Planet Payment, this scheme enables tourists to recover VAT paid on certain purchases made in the UAE. It aims to boost tourism by offering 5% VAT refunds on physical goods that are taken outside the UAE.

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✅ Who Qualifies as a Tourist for VAT Refund?

A person is considered an eligible tourist if:

• They are not a UAE resident

• They are not a crew member of a UAE-based airline

• They stay in the UAE for less than 90 days

• They depart the UAE with the purchased goods within 90 days

• The goods were purchased from a Planet Tax-Free affiliated retailer

📌 Tourists must have their passport scanned at the time of purchase to participate in the scheme.

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🏨 Is Hotel VAT Refundable for Tourists?

No. According to the FTA guidelines:

❌ Not Refundable for Tourists

Hotel stays & accommodation charges

Restaurant and bar bills

Tourism packages

Car rental or chauffeur services

Theme park or entertainment entry tickets

Public transport (metro, taxis, buses)

These services are excluded from the tourist VAT refund program because they are consumed within the UAE, and VAT refunds are only applicable to tangible goods exported out of the country.

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✈️ What Travel-Related Expenses Are Eligible for VAT Refund?

Only goods that are exported physically can be refunded — such as:

• Electronics (mobiles, tablets, cameras)

• Watches and jewelry

• Fashion and clothing

• Perfumes, cosmetics, accessories

• Souvenirs and gifts

📦 The goods must be:

• New and unused

• Carried with the traveler at departure

• Exported within 90 days of the purchase date

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💳 How Do Tourists Claim Their VAT Refund?

The refund process is simple and digital:

🛍️ At Time of Purchase:

1. Shop at a retailer displaying “Tax-Free” logo

2. Present your original passport for digital validation

3. Ask the cashier to issue a Tax-Free tag via Planet’s system

🛫 At Airport / Port / Border:

1. Go to a Planet VAT Refund kiosk (available in all major airports and exit points)

2. Scan your passport and receipts

3. Validate goods if required (customs may ask to see items)

4. Choose your refund method:

o Cash (up to AED 7,000)

o Credit card transfer

💡 Refund is issued only after goods are confirmed to be exported.

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💼 Documents Required for Refund

Required Item Description

Valid passport Scanned at time of purchase

Boarding pass / travel ticket To prove departure

Original Tax-Free receipts From approved retailers

Eligible goods Must be carried by traveler

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📍 Where Are VAT Refund Points Available?

• Dubai International Airport (DXB)

• Abu Dhabi International Airport (AUH)

• Sharjah International Airport (SHJ)

• Al Ain, Ras Al Khaimah, Fujairah Airports

• Land border crossings with Oman and Saudi Arabia

• Port Rashid and cruise terminals

📌 Refund kiosks are usually available before immigration counters at airports.

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⏱️ Refund Time and Limits

Detail Value

Max refund in cash AED 7,000

Refund method Cash or credit card

Refund time (card) 7–10 business days

VAT refund per item Full 5% if eligible

Max refund period Within 90 days of purchase

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🚫 Common Reasons for Refund Denial

Reason Why

Bought from a non-participating store Not in Planet network

Missing passport validation Tourist not linked to transaction

Service-related VAT (hotels, food) Ineligible for refund

Did not export goods Refund canceled

Exceeded 90-day limit Refund expired

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🧾 Final Thoughts

While hotels and travel-related services are not VAT-refundable, tourists can easily claim back VAT on goods they purchase and carry out of the UAE. It’s a tourist-friendly initiative that enhances the UAE’s image as a global shopping and travel destination.

To make the most of your trip, ensure you shop from Planet-affiliated stores, request a Tax-Free tag, and validate everything before you leave the UAE.

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💼 Need Support or Advice?

At Sheikh Anwar Accounting & Auditing LLC, we assist:

• Retailers looking to register for the Tourist Refund Scheme

• Tour operators seeking VAT clarification

• Individual tourists with large purchases and refund queries

📧 Email: info@sa-auditors.com

🌐 Visit: www.sa-auditors.com