Since December 2024, the UAE has run a digital VAT refund system that lets tourists reclaim VAT on purchases made through registered e-commerce platforms, not only on goods bought in person from a physical store. The system is operated by Planet, the Federal Tax Authority’s authorized refund operator, and the mechanics, minimum purchase amount, refund percentage and administrative fee all follow specific rules that determine how much a tourist actually gets back.
What Is the UAE Tourist VAT Refund System for E-Commerce Purchases?
The system allows a tourist shopping from an FTA-registered online retailer to have the VAT refund process initiated digitally at checkout rather than through a paper tax-free tag collected in-store. It sits alongside the UAE’s existing in-store tourist VAT refund scheme, which has operated since late 2018, and extends the same underlying refund entitlement to online purchases.
Who Is Eligible for a VAT Refund on Online Purchases in the UAE?
To qualify, a tourist must be at least 18 years old, hold a valid travel document that can be verified at checkout, and be a genuine visitor rather than a UAE resident. The purchase itself must reach a minimum of AED 250, tax inclusive, from the same registered retailer, and the goods must leave the UAE unused in the tourist’s possession, since items consumed or used within the country before departure do not qualify. Purchases below the AED 250 threshold from a single retailer are not eligible, so a tourist making several small purchases from the same platform should check whether they can be combined into one qualifying transaction.
Also check: VAT Refund Service in UAE
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How Much VAT Do Tourists Actually Get Back?
The refund is not the full 5% VAT paid. FTA Decision No. 11 of 2026 reduced the per-claim administrative fee from AED 4.80 to AED 3.60 and increased the refundable share from 85% to 87% of the VAT paid, effective 12 July 2026. The current calculation is the purchase price multiplied by 5 divided by 105, to isolate the VAT component, multiplied by 87%, with the AED 3.60 fee then deducted. On a qualifying AED 250 purchase, this works out to roughly AED 6.76 back. On a AED 5,000 purchase, the refund comes to approximately AED 203.54. Tourists making a single large purchase see a proportionally better return than tourists making several small purchases, since the flat AED 3.60 fee is deducted per claim rather than per item.
How Does the Online Refund Process Work?
The process runs in five steps. First, the purchase is made through an FTA-registered e-commerce platform rather than an unregistered online seller. Second, travel document details are provided at checkout so the purchase is linked to the tourist’s profile in the refund system. Third, a digital invoice is generated automatically rather than a paper receipt that needs to be kept safe. Fourth, the tourist logs into the Shoppers’ portal to confirm the purchase is showing correctly and linked to the right travel document. Fifth, the refund is validated and released at the point of departure, whether that is an airport, seaport or land border, before the tourist leaves the UAE.
Must check: VAT Consultants in UAE
How Does the E-Commerce Refund Differ From an In-Store Refund?
The in-store scheme relies on a physical tax-free tag issued at the point of sale, which the tourist then presents at a validation kiosk before departure. The e-commerce scheme skips the physical tag entirely: the travel document is captured digitally at checkout, and the invoice and refund eligibility are already recorded in the system by the time the tourist reaches the airport, seaport or border crossing. Both routes converge at the same final step, since export validation still happens at the departure point in either case, and both are subject to the same AED 250 minimum, the same 87% refund rate, and the same AED 3.60 administrative fee under FTA Decision No. 11 of 2026.
What Are the Time Limits to Validate and Claim a Refund?
A tourist must validate the export of the purchased goods at the departure point within 90 days of the purchase date. Once that export validation is complete, the tourist has up to one year from the validation date to actually claim the refund, whether as cash in UAE dirhams or as a credit to a card. Missing the 90-day export validation window forfeits the refund entirely, since the system has no mechanism to validate goods that have already left the country unrecorded.
Common Mistakes Tourists Make With This Refund System
The most frequent error is treating several small purchases from the same online retailer as automatically eligible, when only a single transaction reaching AED 250 tax inclusive qualifies, so consolidating an order before checkout can make the difference between a refund and no refund at all. Tourists also sometimes forget to complete export validation before leaving, assuming the digital nature of the e-commerce refund means it happens automatically without any action at departure, which is incorrect. Finally, using or opening goods before departure can disqualify them from the refund, since the requirement is that the goods leave the UAE unused in the tourist’s possession.
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How Farahat & Co. Can Help
Our team advises UAE e-commerce and retail businesses on registering for the tourist VAT refund scheme, VAT compliance for cross-border and online sales, and broader VAT registration and filing requirements.
Contact Farahat & Co. today to discuss your VAT compliance requirements.
Need Expert Advice?
Contact the team at Farahat & Co. for professional support and expert insights for businesses operating in the UAE.
