HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Governor of Dubai and Finance Minister and President of the Federal Tax Office, issued a decree on the VAT refund system for tourists. The start date for the system is set in stages I and II. The maximum recoverable amount of cash, the minimum value of recoverable purchases and the goods excluded from redemption.
The decision containing the number (2) for 2018 contains seven articles. VAT refund requests will be initiated by retailers participating in the VAT refund system for tourists from next Sunday, 18 November. On Sunday, he will be able to return VAT via the Abu Dhabi International Airport, Dubai International Airport and Sharjah International Airport. Incoming foreign tourists will be able to refund value added tax through other state airports, land ports and seaports where the system is used. Ra from 16 December 2018.
With regard to procurement procedures, the decision identified five essential steps to be taken by the retailer if the customer is required to purchase within the VAS for tourists. The first step is to carry out the verification procedures established by the Federal Tax Office and the system operator in order to establish (52) 2017 and that it is within the State when purchasing goods and is in the retail store with purchase invoices when applying for the issue of recovery documents, and also ascertains whether the delivery of the Goods was longer than 90 days from the date of filing of the request for the issue of redemption papers.
According to the decision, if the customer is required to purchase within the VAS for tourists, the vendor must record customer details and contract details as stipulated by the FCA and provide the necessary proof to the customer to demand VAT refunds upon exportation, A the retailer must comply with all procedures regarding the handling, packaging and delivery of goods set by the Commission for certain goods or categories of goods as well as fulfillment of all other conditions stipulated by agreement approved by the retailer Providing a free buying service.
The decision also states that the vendor may not issue refunds to a customer who has not passed the age of 18. The tax refund operator does not have to refund taxes to tourists from outside the country unless it is verified that tourists are exporting goods out of the country Within 90 days of delivery.
The Decision provides that an operator must verify exported goods and redemption requests in accordance with the criteria agreed with the Authority. An operator may use a third party to perform verification procedures on his behalf, if approved by the Authority.
He specified that the Authority is required to charge travelers from foreign countries administrative fees in the amount of 15% of the amount of VAT refunded to tourists coming from abroad and a fixed charge of 4.8 dirhams on a refund request, with the operator deducting these fees from the Amount refunded to a tourist coming from abroad on behalf of the Federal Tax Office and the maximum refund of the value added tax 10 000 AED to a tourist from abroad for every 24 hours.
As regards the minimum recoverable amount, the decision stated that the tax would not be refunded under the system for any application unless the value of the purchase was included in the tax by the taxable person and a traveler from a country outside that country is required to refund the tax , which originated on 250 dirhams and more.
The resolution provided for the exclusion of three categories of goods from the VAT refund procedure for tourists, including goods not accompanied by foreign tourists at the time of leaving the country, goods which were consumed wholly or partly in the state or in any other country except for vehicles and boats A aircraft .