On this page
- What you need to know now
- Understand what the historical headline meant
- Choose a refund method before finalising travel plans
- Protect the claim at purchase and departure
- Distinguish a delayed payment from failed validation
- A practical way forward
- Frequently asked questions
- Official sources & further reading
What you need to know now
“Unlimited” is an old headline about electronic refunds; it does not mean every purchase or refund method is unrestricted.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- The old AED 10,000 cash figure is outdated.
- The current FTA cash ceiling is AED 35,000.
- Card refunds have no stated amount ceiling on the service card.
Understand what the historical headline meant
The word unlimited in the original 2018 report referred to an electronic refund option, not an unrestricted right to reclaim every purchase. Eligibility, goods, validation and payment-method conditions still need to be satisfied. The old cash figure and launch deductions should therefore remain part of the historical article rather than a current travel budget.
When planning a claim, separate the purchase value, VAT charged and expected refund. They are three different amounts. A high-value purchase does not mean the full VAT will be repaid without deductions, and an electronic payment option does not remove the need to validate the goods before departure.
Choose a refund method before finalising travel plans
The current FTA service card distinguishes the cash ceiling from card refunds. Confirm the available method and current limits with the scheme operator for the transaction. A traveller seeking a large refund should consider the practical payment arrangements early rather than relying on an old headline at the airport.
Keep the payment details and transaction references accurate. If a card is used, retain the confirmation and check the account through normal secure channels. Do not give a card PIN or account sign-in secret to an unsolicited caller who claims that a large refund needs to be unlocked.
Protect the claim at purchase and departure
Ask the retailer about scheme participation and tax-free processing before completing the purchase. Check that the traveller details match the document used to enter the UAE. If an error appears, raise it promptly while the store can still identify the transaction and explain the available correction process.
At departure, keep the goods accessible for any required inspection. Confirm the relevant validation point before checking baggage or crossing the border. Carry the original travel document and the transaction information requested by the operator. The amount being claimed does not exempt the traveller from these practical steps.
Distinguish a delayed payment from failed validation
If money has not arrived, first establish whether export validation was completed successfully. A payment query should include the validated transaction reference and selected method. A purchase receipt alone may not show whether the departure stage was completed, which makes it harder to identify the reason for the delay.
Use verified operator support and keep a record of the response. Fees, conditions and locations can change, so the current FTA service card should be checked near the travel date. The historical report remains useful background to the scheme’s introduction, not a guarantee of an unlimited cash or immediate refund.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
Estimate the refund separately from the purchase value.
- 02
Step 2
Choose a suitable supported refund method.
- 03
Step 3
Keep the validation reference until payment arrives.
CLEAR ANSWERS
Frequently asked questions
Does unlimited mean no eligibility conditions?
No. Eligible goods and export validation still matter.
Is cash unlimited?
No. Use the current cash ceiling above.
Read the original article First published 15 November 2018 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
Unlimited VAT Refund for Tourists: The VAT refund scheme for tourists is seen to play a key role in boosting inbound tourism to Dubai and the UAE.
Most refunds expected to come from purchases of gold jewellery, electronics and luxury goods.
Tourists visiting the UAE have a reason for joy as the government has set no minimum limit for tourists’ VAT refund, which will come into effect from Sunday, November 18.
The daily maximum VAT refund for tourists has been capped at Dh 10,000 in cash. But if the refund claim exceeds that amount, then the funds will be transferred electronically to the tourist.If it is a cash refund, then the limit is Dh10,000 and if it is unlimited, then the tourist will be refunded by transferring the amount electronically to his/her account, debit or credit cards.
Unlimited VAT Refund for Tourists
Planet will manage the entire process for tourist VAT refunds on behalf of the UAE’s Federal Tax Authority (FTA).
The number of companies registering for the tourist VAT refund scheme are expected to more than double from currently 4,500-plus to 6,000 by the end of 2018 and 10,000 by early next year.The registered companies come from all sectors, mainly electronics, gold traders, general traders, souks and others.
The total value of tax inclusive purchases from the retailer must amount to a minimum of Dh 250 to be eligible for a refund. Tourists will not receive the full 5 per cent VAT because the refund is limited to 85 per cent of the VAT amount paid to the retailer, less a one-off administrative fee of Dh 4.80 per tax-free form.
Khalid Ali Al Bustani, director-general of the FTA, said retailers must pass credit check and continuously settle tax payments and submit VAT returns to be eligible for the refunds.
“If they’ll stop paying taxes and tax returns in future, the FTA can terminate them from the scheme… and if tourists are leaving after 90 days, they won’t be getting a refund,” he said.
The refunds are likely to have a positive impact on the psychology of tourists looking to shop in the UAE. Refunds will cover a broad range of goods sought by tourists, and are in line with practices in other countries… to date, thousands of retailers have registered to take advantage of the scheme. This is yet another important marketing initiative retailers can use to boost sales and ensure that the UAE remains an attractive shopping destination.
This scheme will certainly play a key role in boosting inbound tourism to Dubai and the UAE. It is a very positive move. We have witnessed it in a number of countries that we operate in that the tourism and inbound tourism sector is very welcoming of such schemes. The government has had the foresight to adopt such scheme and we see it as very positive for Dubai and UAE tourism industry.
VERIFY THE DETAIL
Official sources & further reading
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
