UAE's new AI platform to slash VAT refund time for tourists to one day

The United Arab Emirates has introduced an AI-powered platform designed to significantly reduce the time it takes for tourists to receive VAT refunds, from nine days to just one day. VAT refunds offer visitors a way to recoup a substantial portion of the consumption tax they've paid on their purchases, thereby lowering the overall cost of their shopping experience.

Abdulaziz Al Mulla, the director general of the Federal Tax Authority, highlighted that this new platform represents a major leap forward in the tourist tax refund process, improving the overall experience for travelers upon their departure from the country.

The Federal Tax Authority, under the Ministry of Finance, collaborated with Planet, the authorized operator of the VAT refund system for tourists in the UAE, to bring this innovative platform to life. Al Mulla emphasized that the platform exemplifies a forward-thinking approach by prioritizing customer needs in service design, facilitated by robust integration and data-sharing among government entities and partners.

This collaborative effort underscores the UAE's commitment to delivering top-tier services, aligning with best practices and reinforcing the nation's reputation as a premier global destination for tourism and shopping.

The AI platform builds on a system introduced in 2024, which allows tourists to request VAT refunds directly through registered e-commerce platforms by providing their travel document information during the purchase process, prior to the shipment of their orders. Mr. Al Mulla noted that the UAE has emerged as one of the fastest countries globally in terms of tourist tax refunds, with the time needed for tourists to receive their refunds reduced to just one business day, a stark contrast to the previous nine-day duration.

This achievement underscores the continuous enhancements and advancements made by the Federal Tax Authority to elevate this smart service, further solidifying the UAE's appeal as a top-notch tourist destination.