The Federal Tax Authority (FTA) announced on Monday a notable rise in the number of transactions handled by the digital Value Added Tax (VAT) refund system for tourists, reaching 2.7 million in the first half of 2024, up from 2.55 million during the same period in 2023. These figures are derived from the electronic issuance of refund “Tax free Tag” by retail stores connected to the system, averaging about 15,000 transactions daily, a 5.62 percent increase from 14,180 transactions in the same period of 2023.
The FTA disclosed in a statement that by the end of the first half of 2024, a total of 19.67 million digital tax refund requests from tourists had been processed since the system’s inception, marking a 35.25 percent increase from 14.54 million transactions by the end of H1 2023. Over the year from June 30, 2023, to June 30, 2024, 5.13 million electronic tax refund requests were processed, averaging more than 14,000 transactions daily. Khalid Ali Al Bustani, director-general of the FTA, attributed the significant increase in tax refund requests to the UAE’s current tourism boom, reflecting the wise leadership’s vision to diversify policies and enhance the role of various sectors, including the tourism industry.
The FTA is implementing digital transformation plans to provide advanced tax services, aligning with government priorities and directives, aiming to accelerate service delivery, reduce paper usage, and minimize document requirements. The network of retail stores electronically linked to the tax refund scheme for tourists has expanded significantly, reaching 16,870 stores by the end of H1 2024, an 8.07 percent increase from 15,610 stores by the end of H1 2023. The number of linked retail stores has grown steadily from 10,260 at the end of 2020 to 16,480 by the end of 2023.
Additionally, there has been a significant increase in the deployment of self-service kiosks, which enable tourists to process their tax refund requests in about two minutes per transaction. The total number of kiosks increased to 95 by the end of H1 2024, a 20.25 percent rise from 79 kiosks by the end of H1 2023. Planet, the company authorized by the FTA to operate the system, manages these kiosks, which are equipped with technology for fully automated tax refund procedures and are widely available in major shopping centers, hotels, and departure points from the UAE.
