UAE Tourist VAT Refund Changes from July 2026

UAE Updates Tax Refunds for Tourists Scheme: Key Changes Effective 12 July 2026

The UAE Federal Tax Authority (FTA) has issued Federal Tax Authority Decision No. 11 of 2026, introducing updates to the Tax Refunds for Tourists Scheme. The decision was issued on 1 July 2026 and will come into effect from 12 July 2026.

The amendments aim to enhance the efficiency of the tourist VAT refund process and update certain fees applicable under the scheme.

Overview of the UAE Tourist VAT Refund Scheme

The UAE Tax Refunds for Tourists Scheme allows eligible overseas tourists to claim a refund of Value Added Tax (VAT) paid on qualifying purchases made from participating retailers in the UAE, subject to meeting the required conditions.

The scheme is administered through approved procedures established by the Federal Tax Authority and its appointed operator.

Key Updates Effective 12 July 2026

Reduction in Fixed Refund Claim Fee

One of the main changes introduced by Federal Tax Authority Decision No. 11 of 2026 is the reduction of the fixed fee charged per VAT refund claim.

Previously, a fixed fee was applicable for each refund claim. Under the updated decision, the fixed fee has been reduced to: AED 3.60 per refund claim

In addition to this fixed fee, an administrative fee of 13% of the VAT amount being refunded remains applicable.

The applicable fees will be deducted by the scheme operator from the refund amount payable to the overseas tourist on behalf of the Federal Tax Authority.

Existing Conditions Continue to Apply

While the fee structure has been updated, the main eligibility requirements and procedures under the Tourist VAT Refund Scheme remain unchanged.

Eligible Tourists

To qualify for a VAT refund, the customer must:

• Be an overseas tourist eligible under the UAE VAT Executive Regulation requirements.
• Be physically present in the UAE when purchasing the goods or requesting issuance of the refund documents.
• Be at least 18 years old.
• Export the purchased goods outside the UAE within the permitted period.

Purchase Requirements

Retailers participating in the scheme must verify customer eligibility and record purchase details before issuing VAT refund documentation.

The following conditions apply:

• The goods must be purchased from a registered participating retailer.
• The refund request must relate to goods supplied within 90 days from the date of issuance of refund documents.
• The minimum tax-inclusive purchase value from the same retailer must be AED 250 or more.

Export Verification Requirements

Before processing a refund, the scheme operator must verify that:

• The tourist is exporting the purchased goods outside the UAE.
• The goods and refund claim meet the required verification criteria.

Export verification must be completed within 90 days from the date of supply of the goods.

Goods Not Eligible for Tourist VAT Refund

The following items remain excluded from the Tax Refunds for Tourists Scheme:

• Goods that are not carried by the tourist when leaving the UAE.
• Goods that have been fully or partially consumed in the UAE or another implementing state.
• Motor vehicles, boats, and aircraft.

Refund Limit

Cash VAT refunds remain subject to the maximum limit of:

AED 35,000 per overseas tourist within a 24-hour period.

What Retailers and Tourists Should Know

Retailers participating in the scheme should ensure their refund systems, customer communication, and procedures reflect the updated fee structure from 12 July 2026.

Tourists visiting the UAE can continue to benefit from the VAT refund scheme by purchasing eligible goods from participating retailers and completing the required export verification procedures before departure.

Summary of the Amendment

Businesses and tourists are encouraged to review the updated requirements to ensure compliance with the latest Federal Tax Authority regulations.