In 2018, the United Arab Emirates introduced a value-added tax (VAT). Alongside it, they launched a tax refund system for non-residents who purchase goods but do not use them within the country.

In 2025, the system continues to operate actively, often in an automated mode, allowing travelers to recover a portion of their expenses just before departing the UAE. In this article, we will explore how to take advantage of the tax refund, who is eligible, and what nuances to consider.

Contents:

  1. How Does the Tax Refund Work in the UAE?
  2. Where Can You Get a Tax Refund?
  3. Common Issues with Tax Refunds in the UAE

How Does the Tax Refund Work in the UAE?

Most goods are subject to a 5% VAT. This applies to clothing, footwear, electronics, jewelry, furniture, as well as restaurant and hotel services. Non-residents — individuals without UAE residency or citizenship — can claim a refund if they use the purchased goods outside the UAE.

To do so, purchases must be made at stores marked as Tax Free. These stores issue a paper or digital receipt indicating eligibility for a tax refund. However, the total transaction amount must be at least 250 dirhams ($68).

The program excludes tobacco and alcoholic products, alcohol, weapons and ammunition, and pork products. The same applies to souvenirs, as well as goods purchased in bulk or exceeding personal use limits (such as industrial, medical, or commercial equipment). You can ask at the checkout whether a specific item qualifies for a VAT refund.

Before leaving the UAE, goods are registered via self-service electronic terminals located at airports, shopping malls, or border checkpoints. Receipts are scanned and entered into the system.

Next, the tourist presents the goods, receipts, and passport to customs officials. If the items remain unopened and unused, customs verifies them, and the tax refund is granted for those purchases.

The refund amount is approximately 85% of the 5% VAT. For example, for a purchase of 1,000 dirhams, the VAT is 47.62 dirhams, and 40.48 dirhams will be refunded. Payment can be received in cash immediately or credited to a card within 10–30 days (sometimes up to two months).

Overall, the process is highly automated: terminals and mobile apps streamline registration, and customs queues are kept to a minimum. The key is not to miss the deadline—refunds must be requested within 90 days from the date of purchase.

Where Can You Get a Tax Refund?

You can claim a tax refund at the UAE’s major transport hubs, such as Dubai International Airport (DXB), Abu Dhabi International Airport (AUH), and Sharjah Airport (SHJ). These locations are equipped with specialized terminals and counters for processing goods and issuing VAT refunds.

For those leaving the country by sea, refunds are available at major ports like Port Rashid in Dubai or Zayed Port in Abu Dhabi. For land travel, refund points operate at border checkpoints such as Al Ghuwaifat (on the Saudi Arabia border) or Hatta (on the Oman border). However, when crossing a land border, it’s advisable to check in advance whether Tax Refund terminals are available there.

You cannot receive a refund directly at stores, even though many large malls participate in the Tax Free program, including Dubai Mall, Mall of the Emirates, and Yas Mall in Abu Dhabi. That said, these malls often have information desks where you can clarify details about the refund process. To locate the nearest refund point, you can use the Planet app or visit the FTA website.

Common Issues with Tax Refunds in the UAE

The most frequent reason for a refund denial is a breach of packaging integrity. Even if you buy an item and simply open the box to inspect it closely, claiming a refund becomes difficult. Goods must remain in their original packaging and unused until customs inspection.

Other common mistakes during the refund process include: 

  • Loss of the receipt. In this case, recovering the money is impossible, so it’s best to opt for a digital receipt rather than a paper one. As a precaution, you can also take a photo of the receipt. 
  • Purchasing from the wrong store. Not all stores in the UAE are part of the Tax Free system. Before buying, check for the program’s logo on the door or at the checkout. If in doubt, ask the seller whether they issue VAT refund receipts. 
  • Missing the registration deadline. Buyers have 90 days from the purchase date to register their receipt and claim a refund. If this period expires, the VAT becomes non-refundable. 
  • Lack of time. Registration and verification take time, so it’s recommended to arrive at the airport at least 2–3 hours before your flight to complete all steps without rushing.

Overall, the tax refund process in the UAE is well-established, and difficulties typically arise from the applicant’s errors. This is especially true if goods were bought at local markets or small shops, as not all of them are included in the Tax Refund program.