The UAE is launching a new value-added tax refund system for e-commerce purchases made by tourists during their stay in the country. This is considered to be the first such scheme in the world.

The current VAT rate in the UAE is 5 %. Until now, tourists and visitors could only claim VAT refunds for purchases made in physical stores. The newly introduced system will allow tourists to apply for VAT refunds for eligible purchases through e-commerce platforms registered with the FTA. They should submit their travel document details and personal information at the time of purchase. The VAT refund registration will be finalized once the tourist’s identity is confirmed during delivery or when the online order is processed.

Normally all goods (but not services) that have VAT applied, are eligible for VAT refund except for:
- motor vehicles, boats and aircrafts; 
- goods that have been fully or partly consumed in the UAE or are not accompanied by their original packaging at the time of leaving the UAE.

Tourists and visitors will be able to receive 87% of the total VAT paid on their internet purchases, minus a fee of 4.80 AED per each validated Tax Free tag affixed to the back of the tax invoice.