UAE introduces one-day tourist VAT refunds through AI

The Federal Tax Authority in the UAE has launched an artificial intelligence platform enabling tourists to receive value added tax refunds within one business day, down from the previous nine-day waiting period. This system, operational at Dubai, Abu Dhabi, and Sharjah international airports, simplifies departure procedures for eligible visitors.

To claim a refund, tourists register via Planet's mobile application using facial recognition and provide their passport and bank card details. At departure, they scan a QR code at airport refund service points, initiating the verification process through AI. The AI determines which transactions qualify for automatic processing or require inspection, directing travellers accordingly.

Labeled a fully paperless refund process, the system compares invoice records with travel information and offers language support tailored to visitors' nationalities. It also flags unusual transaction patterns to safeguard public revenue. Eligible purchases, valued at a minimum of AED250, must be made from participating retailers within 90 days of the invoice date.

Since its inception in 2018, the scheme has refunded approximately AED4.2 billion across 25 million transactions. Projections for 2026-2027 anticipate around 4 million transactions worth AED692 million. Customer satisfaction stands at 93 per cent, up from 92 per cent in the same period the previous year. As of now, 16,700 retail points are connected to the scheme, with 769 outlets joining in the first nine months of 2026.