The UAE Federal Tax Authority has partnered with digital payments solution provider Planet Tax Free to launch fully digital, paperless value added tax (VAT) refund scheme for tourists visiting the UAE.
As per WAM, the paperless solution is integrated electronically between retail outlets and the tax refund scheme, ensuring a seamless digital process of issuing, sending, modifying and saving invoices for tourists, as
Khalid Ali Al Bustani, FTA director-general, said, “The system achieves high satisfaction rates by users for its simple, effective and smooth tax-refund process for eligible tourists. Tourist VAT refund transactions increased by 104.15 per cent during 2022 as number of transactions doubled to 2.31 million transactions during the first eight months of this year.”
In 2021, 1.13 million transactions were registered during the same period. The total value of tourist VAT refunds increased by 113.48 per cent from January to the end of August 2022 compared to the same period in 2021.
Eyad Al-Kourdi, general manager of Planet Tax Free, said, “In a matter of moments, shoppers can complete a transaction, receive a digital invoice and share it directly with Planet Tax Free. The electronic tax-refund system is integrated for purchases at a range of hotels, shopping centres, malls and other retail locations. Upon departure from the UAE, tourists can use one of more than 100 self-service kiosks available at departure points, for a simple, quick and hassle-free experience.”
Both the UAE Federal Tax Auhtority and Planet Tax Free believe that 3.5 million traditional paper invoices will go digital, resulting in overwhelmingly positive benefits including keeping pace with the digital transformation strategy of the UAE.
The paperless VAT scheme will save merchants up to five minutes per customer (compared to printing receipts).
The 100 per cent paperless process will save more than 16,800 trees per year and more than 4,000 tonnes of carbon dioxide emissions.
