Tax-Free Shopping in Dubai
Dubai should be on your list of places to visit if you enjoy shopping. Among the seven emirates, Dubai is notable for its outstanding retail sector. The best part? The scope and diversity of the tax-free shopping in Dubai experience will astound you. In this article, we’ll take a closer look at this shopping.
What is tax-free shopping?
Tax free shopping is a value-added tax refund system. Despite introducing a five percent VAT in 2018, visitors may still buy across the UAE without paying taxes. Only goods bought for export during your visit to the UAE are eligible for VAT refunds. Planet Tax Free, the system's sole operator, manages the reimbursement procedure. The majority of UAE merchants participate in the program.
Items that have been wholly or partially used in the UAE or that you are not taking with you when you leave are not eligible for VAT refund for tourists. Keep in mind that to be eligible for the tourist refund scheme, you must depart the UAE within ninety days of completing your purchase.
The Federal Tax Authority (FTA) launched a new VAT refund program for online transactions in December 2024. Simply follow the instructions on e-commerce platforms registered with the FTA to request a refund for online purchases.
Dubai’s VAT System and Exemptions
Dubai has a VAT structure that differs from that of other well-known global shopping locations. Companies and visitors may save money thanks to the city's effective refund procedure. Tax-free zone retailers have 25–30% higher profit margins than those in ordinary regions.
Different retail industries are affected differently by VAT exemptions. The biggest gain is in luxury products, where VAT refunds plus seasonal discounts can result in 12–15% savings. Fashion products enjoy a total decrease of around 7-9%, while electronics often provide 8-10%.
How much is VAT in the UAE?
Most goods and services in the United Arab Emirates are subject to a standard VAT rate of 5%. Nonetheless, some products and services — such as overseas travel, specified medical and educational services, certain precious metals, and specific modes of transportation — are subject to 0% VAT.
| Tier | Rate | Applicable goods |
| Standard Rate | 5% | Most of the goods and services. |
| Zero Rate | 0% | - International transportation and supplies - Supplies of certain transportation - Certain precious metals - Certain goods and services for education - Certain healthcare services |
How to shop Tax-Free in Dubai?
Simply visit any of the registered retailers taking part in the tax-free program and shop tax free in Dubai Mall or other locations. Request a tax-free transaction for your tax free purchases when you're finished.
Give your details
Your name, as it appears on your passport or GCC ID, and the merchant will enter a working phone number into the digital system.
Obtain the tax invoice and tag
You will receive a tax invoice and a Planet tax-free sticker affixed to the rear. To access the shopper portal, scan the QR code on the tag.
Verify before departing the UAE
Verify your tax-free purchases at any Planet station for the validation process at key departure points. Present your travel documents, goods, and tax invoices to the staff.
Conclusion
Tax-free shopping in Dubai offers visitors a great opportunity to save money. They get a refund of VAT on eligible purchases. With specialized kiosks at airports and other exit points, the refund procedure is simple and convenient for travelers.
FAQ
Is there a maximum refund amount?
Yes, AED 10,000 is the maximum refund amount per transaction.
Who is eligible for a VAT Refund?
Visitors who are not residents and who fulfill the requirements of the UAE's refund system.
How can I claim a refund for my shopping in Dubai?
Get your refund at the airport after requesting a tax-free purchase from participating retailers and validating your receipts at a Planet Tax-Free kiosk.
Is there a faster way to claim refunds?
The procedure is sped up using a self-service kiosk at exits or airports.