UAE introduces world’s first online tax-free shopping system for tourists

Announced by the Federal Tax Authority (FTA) in partnership with Planet, the designated tax-free operator, the system is entirely paperless and operates via a digital platform. Tourists can upload their personal documents, scan receipts, and seamlessly apply for VAT refunds.

Refunds are processed after identity verification during delivery or at the time of order fulfillment for online purchases. The initiative builds on the UAE’s existing tax refund system introduced in 2018, which already enables visitors to claim VAT on eligible in-store purchases within 90 days.

Refund limits include a maximum of AED 7,000 in cash per transaction, with no cap on credit card refunds. However, certain exclusions apply – VAT cannot be claimed on vehicles, yachts, motorcycles, or items consumed within the UAE. To be eligible, tourists must leave the UAE within three months of purchase, taking the items with them.