Duty-free : tourists will no longer pay VAT in Abu Dhabi from the end of 2018

The government of the United Arab Emirates has approved the refund of VAT for tourists from the last quarter of 2018.

The Cabinet of the United Arab Emirates (UAE) has decided to set up a VAT refund system for tourists.

This new tax refund system will help support the growth of the tourism sector in the UAE and strengthen its position as a major destination on the international scene. The system will be implemented from the fourth quarter of 2018 in cooperation with an international company specializing in tax collection services.

Non-resident tourists will be able to obtain VAT refunds on purchases made from participating retailers (provided that these products are not exempt from the tax regime) through dedicated refund points.

The tourism sector contributes directly to the local economy. H.E. Saif Saeed Ghobash, Undersecretary of the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) commented : « The VAT refund for tourists will further boost our strategy to position Abu Dhabi as a destination of distinction. The United Arab Emirates in general, and Abu Dhabi in particular, will now benefit from this additional attraction factor for all types of tourists and business travellers, strengthening the emirate’s position as a destination of choice and further increasing its number of potential visitors. »

« This new directive is part of the UAE’s efforts to establish an effective tax system in the emirates and will directly support the growth of our tourism sector. It will also work in conjunction with the recently announced reduction in the tourist tax, which means that accommodation costs will be reduced throughout the emirate. »