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

The United Arab Emirates has introduced an artificial intelligence-driven platform to dramatically cut the time it takes for tourists to receive their VAT refunds from nine days to just one. VAT refunds enable visitors to recoup a substantial portion of the consumption tax they pay on their purchases. Abdulaziz Al Mulla, director general of the Federal Tax Authority, stated that the new platform represents a significant leap forward in the tourist tax refund process, improving the overall experience for travelers at the very end of their journey in the country.

The Federal Tax Authority, in collaboration with Planet, the authorized operator of the VAT refund system for tourists, has rolled out this platform. "It exemplifies a forward-thinking government approach that prioritizes customer needs, backed by seamless integration and data-sharing among government agencies and partners to deliver exceptional services in line with industry best practices," Mr Al Mulla explained.

"These initiatives also bolster the UAE's enviable international reputation as a premier global destination for tourism and shopping, enhanced by its secure environment, iconic landmarks, varied events, and tourism offerings." The platform follows the implementation of a system in 2024 that allows tourists to apply for VAT refunds directly through e-commerce platforms by providing their travel document info during the purchase, prior to the package being dispatched.

Mr Al Mulla highlighted that the UAE has emerged as one of the quickest nations globally for granting tourist tax refunds, with the entire process now taking a single business day, down from around nine days previously. This accomplishment underscores the ongoing enhancements made by the Authority to further refine this cutting-edge service.