UAE Revolutionizes Tourist Experience: AI Slashes VAT Refunds to Just One Day

The United Arab Emirates (UAE) has launched an innovative artificial intelligence-powered platform designed to dramatically reduce the time tourists spend waiting for Value Added Tax (VAT) refunds. Previously taking up to nine days, the new system promises to process these refunds in a single day, significantly enhancing the shopping experience for international visitors.

VAT refunds allow tourists to reclaim a substantial portion of the consumption tax paid on their purchases, effectively lowering their overall spending. Abdulaziz Al Mulla, director general of the Federal Tax Authority (FTA), hailed the platform as a "significant advancement in the tourist tax refund journey, enhancing the tourist experience at their final point of contact with the country."

The development is a result of a collaboration between the FTA, which operates under the Ministry of Finance, and Planet, the designated operator for managing tourist VAT refunds in the UAE. Mr. Al Mulla emphasized that the platform "embodies a proactive government model that places customers at the heart of service design, supported by integration and data-sharing between government entities and partners to deliver outstanding services in accordance with best practices." He further stated, "These efforts also reinforce the UAE’s distinguished international standing as a leading global destination for tourism and shopping, supported by its safe environment, attractive landmarks, diverse events and tourism facilities."

This AI-driven initiative follows the introduction of a new system in 2024 that permits tourists to claim VAT refunds on online purchases. This earlier system allows tourists to provide their travel document details via registered e-commerce platforms at the time of purchase, prior to their goods being shipped.

"The UAE has become one of the fastest countries in the world for tourist tax refunds, with the total time required for tourists to receive VAT refunds on their purchases reduced to one business day, compared to approximately nine days previously," Mr. Al Mulla added. "This achievement reflects the continuous improvements introduced by the Authority to enhance this smart service."