December 17, 2025 | Dubai, UAE: The United Arab Emirates offers tourists a comprehensive tax free shopping in UAE system that allows visitors to reclaim Added Tax paid on eligible purchases, making the country an attractive destination for international shoppers. Since its introduction at the end of 2018, the fully digital refund scheme has already carried out transactions of billions of dirhams, making the UAE a top tax-free shopping destination.
The system has been untroubled since the end of 2018, when it started to digitally process transactions worth billions of dirhams, which naturally makes the country a target of students and travellers who wish to make the best of their finances.
Aspects of Tax Free Shopping in UAE
1. VAT System and Structure of Refund
In January 2018, the UAE implemented a VAT of 5 per cent, which will be charged on most goods and services in the country. However, through the Tax Free Shopping in UAE scheme managed by Planet, the exclusive operator authorised by the Federal Tax Authority, tourists can recover 87 per cent of the VAT paid on qualifying purchases. This efficient cash back, including a 4.80 dirham administrative fee per transaction, means that the tourists get about 4.2 per cent of the total value of the purchase back.
The Tax Free Shopping in UAE program operates through a completely paperless digital system, representing the world’s first continuously updated electronic VAT refund platform. This technological infrastructure links the involved retailers to all entry and exit points in the UAE to provide a seamless shopping experience to tourists conducting business in Dubai, Abu Dhabi and other emirates.
It is the first system globally which is continuously updated, which connects merchants to all entry/ exit points within the UAE. And whether it is in the city of Dubai, Abu Dhabi, or any other place, the experience is hassle-free.
2. Eligibility Document and Procedure
To qualify for Tax Free Shopping in UAE, visitors must be aged 18 or above and not residents of the UAE. Students may also be limited, but GCC nationals living outside of the UAE are also eligible to receive a refund. The ship and flight crew that leave the UAE are also specifically not included in the refund scheme.
The minimum purchase threshold for Tax Free Shopping in UAE stands at 250 dirhams per transaction from a single retailer. In stores they will visit, tourists submit genuine travel documents like passports or GCC national identification cards.
The assistants in the stores scan these documents and put customer details into the Planet system automatically, creating a digital tax-free form. The customers will be given a tax invoice, and a Planet tax-free tag will be attached to the back of the tag, which will contain a QR code that will be used to track the transactions via the shopper portal.
3. Requirement: Departure and validation
Under the Tax Free Shopping in UAE system, purchases must be validated at airports, seaports, or land border exit points within 90 days of the purchase date. Before handing over luggage, tourists are expected to visit Planet validation points where travel documents and bought goods should be inspected. The digital system will divide the transactions into a green channel validation, where items will automatically pass through, or a red channel validation, which will entail physical inspection once they are through immigration.
Once validated through Tax Free Shopping in UAE, tourists must depart the country within six hours. Any failure to do this within the given time will lead to cancellation of the refund, which means that the visitors have to go through the whole procedure of validation. This high level of time will ensure the system’s integrity and allow valid traveller requirements.
4. Refund Methods and Timeline
The Tax Free Shopping in UAE scheme offers three refund options: credit or debit card transfers processed within nine days of departure, digital wallet transfers to electronic payment accounts, or cash refunds in UAE dirhams available after immigration.
The easiest way of giving credit card refunds to international visitors is through conversion of currency rates, but there is are chance that the currency rate might be applied based on the currency through which a card is denominated.
Since 2024, Tax Free Shopping in UAE has expanded to include online shopping, enabling visitors to purchase goods through e-commerce websites and claim refunds upon departure. It is an online growth that shows that the UAE is determined to transform its retail experiences and keep up with the evolving tastes of the people.
5. Eligible and Excluded Goods
Goods that are either used up in the UAE or partially used in the country are not refundable, nor are services, goods that are bought on a business basis or goods that are not physically carried along in personal luggage upon leaving. To be validated, tourists are obliged to show things in new, unused condition, with the ideal being in their original packaging.
The Tax Free Shopping in UAE system covers purchases across diverse retail categories, from luxury fashion and electronics to jewellery and souvenirs. Bigger shopping malls in the city of Dubai, as well as the Dubai Mall and Mall of the Emirates, have a large network of taking stores, but it is always recommended that tourists check before purchasing with a store whether it is a participant in the Planet scheme.
VAT You can reclaim on most of the clever things you purchase in shops, but not when you eat them, receive services, or purchase to resell. Store it away, store the wrapping, so that the validator may notice it was fresh.
6. Shopping Places and opportunities
Dubai’s status as a Tax Free Shopping hub in UAE attracts millions of tourists annually, with tax-free shopping transactions exceeding 15 billion dirhams per year. The average transaction per person is 3,500 dirhams, with the luxury items being an average of 12,000 dirhams. The modern malls and traditional souks of the emirate have a world-class shopping infrastructure that offers a wide variety of choices depending on budget and preferences.
The Tax Free Shopping in UAE program integrates seamlessly with Dubai’s annual shopping festivals, including the Dubai Shopping Festival, where retailers offer additional discounts and promotions. All of that, coupled with VAT refunds, poses a great opportunity to save money among tourists who want to purchase luxury goods, electronics, or fashion products.
7. Paperless Innovation
Many retailers participating in Tax Free Shopping in UAE now offer completely paperless transactions through the Planet Shopper Portal. All that customers do is hand in passports, and they are given digital invoices through SMS on their mobile phones. The system does not require physical receipts but allows tracking the transactions in real-time with the online portal accessible with the help of QR codes.
The paperless approach to Tax Free Shopping in UAE represents a significant advancement in retail technology, reducing administrative burden while improving accuracy. Through one digital interface, the tourist can track all the purchases they make tax-free and cannot forget to make any transactions prior to leaving.
All the big names would prefer to go paperless. Present your passport, send an e-invoice to your phone, and the portal does everything. It reduces administration, manages every gig such that you will not forget anything.
8. Tourist Helping and Support ⁻ 00:20:0010:45
Tax free shopping in UAE validation points operate at all civil airports, seaports, and land borders throughout the country. Bon Appétit Dubai and its staff operate at one of the busiest travel centres in the world, Dubai International Airport, which has several Planet validation counters and self-service kiosks that are capable of servicing large crowds of passengers. The personnel will help the tourist with validation, addressing queries on what they can purchase and how they can get the money back.
Approachable employees will guide you. To receive the highest payoff: safeguard those receipts, remember to record that 90-day time period and remember to create time before disembarking the plane to check bags.
Also Read: Discover the Best Luxury Pools in Dubai, Hidden Gems Only Locals Know About
