Daily cash limit of AED7000 for Vat refunds in UAE

ABU DHABI / WAM

HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance and Chairman of the Federal Tax Authority (FTA), has issued FTA Decision No. (1) of 2019, setting a daily maximum of AED7,000 for cash refunds of value added tax (VAT) for tourists applying through the tax refunds for tourists scheme.
In a press statement, the FTA asserted that the tax refunds for tourists scheme, which entered into effect in November 2018, is character-ised by efficiency, seamless procedures, speed, accuracy in processing applications.
FTA Director-General Kha-lid Ali Al Bustani said: “The new decision regarding the maximum daily amount a to-urist can reclaim in cash is in line with the UAE’s overall strategy to reduce reliance on cash in financial transactions, and benefit from country’s advanced digital and technological infrastructure. These systems are key components in driving the continuous development of the UAE’s financial and economic sectors; they facilitate the flow of money and financial assets securely, increasing trust in financial transactions – both local and international.”
“The Federal Tax Authority is committed to implementing the highest inter- national standards across all its activities and services, in line with the directives of the UAE’s wise leadership to make the UAE one of the best countries in the world by 2021,” he added. “We are committed to maintaining the UAE’s competitiveness as the only Arab economy that is based on innovation and creativity. The new decision abides by best practices implemented in advanced economies, which prioritise effective and holistic risk management and promote e-payment solutions.”
Al Bustani went on to say that the Authority is taking all necessary measures to support the UAE’s smart government initiative, which emphasises the e-payment sector, building on the UAE’s success in payment solutions in general. “With that in mind, the FTA installed several self-service kiosks where tou- rists can reclaim the VAT they incurred on purchases in the UAE at any of the exit ports covered by the tax refunds for tourists scheme,” he noted.
The FTA Director-General further added that the advanced service makes it easier and faster to process refunds for tourists on taxes they incurred during their stay in the UAE.