UAE VAT information : Export, UAE and Tourist

Updated : Feb 2020

Here are the brief guidelines on VAT charges and refund process that's followed in UAE. This is a very brief overview

1. If you are a Local UAE based Customer

• 5% VAT on all the products and Services is charged
• VAT will be shown itemized on each invoice for your convenience and for your claim ( in case you are reselling it and claiming it as input vat).
• Your VAT number will be shown on our invoice.

To Summarize, ae 5% flat VAT is charged  on all IT  products and services. If you resell the goods or use them for your business purpose, you can claim this amount as your input vat. It's important to collect an invoice with your TRN/VAT number on it.

Upon receipt of your invoice, please ensure that your TRN number is correctly mentioned. Your supplier can always revise the inovice within the Same VAT Return period, but once the VAT Return is filed, they won't be able to make any changes

2. If you are an Export Customer based out of UAE.

There is no VAT on export, provided Export doucments are prepared by the Freight Forwarder.

• VAT on Export is 0%, but one have to provide Export Documents . In absence of such documents, one can't prove export, and a regular 5% VAT invoice will be made
• Export documents are to be applied by and supplied by the freight forwarder. Generally suppliers  can't apply for these documents, only freight forwarders/shipping companies can.
• Export documents Comprises  of 3 Documents - Customs Exit/Entry Certificate, Export Declaration and Export BL or AWB. Samples Here

Freight forwarders charge AED 400-450 for the export documents so its only economical to apply for export documents for shipments larger than AED 8,000. For a shipment of AED 5,000 for example, its cheaper to pay AED 250 VAT than applying AED 450 Export documents.

3. If you are a Tourist ( Carrying goods out of UAE yourself)

There is now a scheme of refunding the VAT amount for the goods that Eligible Tourists carry out of the country within 90 days of purchase.

• Eligible Tourist: UAE Residents and Crew Members of Flights are not eligible. GCC Nationals are Eligible.
• Minimum Purchase of AED 250
• Digital Process, but you need to keep your Purchase receipt with a Tax-free tag for validation at exiting the country
• Goods Must be Carried by you at the time of leaving UAE, there may be an inspection.
• you must have bought the goods from a registered retailer, and obtain a purchase invoice, with Tax-free tag QR Code.

Process

1. You make an eligible purchase, telling the shop assistant that you want the tax free purchase.
2. Shop assistant asks for your Passport or GCC National card, and prepares an application for you with an app.
3. You leave the shop with a tax-free tag attached to your invoice. Retain this invoice.
4. Within 90 days you exit the country carrying the goods and Tax Free invoice with you.
5. At the time of exit you validate the invoice/receipt at the validation point ( at the airport for example) and get 85% of the total VAT amount ( -AED 4.80 per tag).
6. Upto AED 10K are refunded in cash, higher amounts are paid only to Credit/Debit cards.