The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) unveiled the world’s first paperless tax refund system for visitors on Wednesday.
According to Khalid Ali Al Bustani, director-general of the Federal Tax Authority (FTA), the system has been linked with merchants, so all receipts will be created electronically, and tourists will no longer need to carry paper receipts of their purchases in order to obtain VAT refunds. The UAE implemented a 5% value-added tax (VAT) in 2018, and travelers can claim VAT refunds on purchases made at outlets when they leave the country.
“The biggest challenge for tourists was to carry a lot of papers to claim the refund. When tourists make purchases, they have a printed invoice with a sticker that shows the reference number of the tourist refund code. When they come to the airport for an audit, they will check the paperwork. This is a lengthy process. Hence, we worked with our partner Planet Tax to ensure that data is ready before the tourist arrives at the airport and can collect the refund,” said Al Bustani during a press conference attended by top officials from the FTA, Planet Tax, Seddiqi Holding, Rasool Khoory, GMG, and Apparel.
Tourists must spend at least Dh250 to be eligible for a VAT rebate. Furthermore, there are a number of kiosks located across the country where travelers can seek a refund.
According to Al Bustani, the UAE is the first country in the world to reach this milestone. This program is also part of the government’s aim to deliver as many digital services as possible to citizens and tourists. The Dubai government will be the first in the world to go totally paperless in December 2021.
Because the systems of merchants, FTA, and Planet Tax will be integrated, all receipts will be created electronically, and visitors will be able to view information on their VAT refunds online via the Planet Tax website.
UAE launches paperless tax refund for tourists
Source: Pinoy News Udpates PH
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