Shopping in Dubai: How to get VAT refunded?

Dubai has some of the largest shopping malls in the world. Take the famous Dubai Mall for instance, which spans 800,000 square meters and houses 1,200 shops!

Needless to say, these places are a shopper’s paradise, and it won’t be easy to resist temptation given the endless shopping possibilities.

The good news is that Dubai offers a tax-free shopping program for foreigners: you can claim back (part of) the VAT on your purchases.

But don’t get too carried away:

• VAT in Dubai is only 5% (compared to 20% in France)
• There’s an administrative fee of AED 4.80 per receipt
• You get back 85% of the VAT (after the administrative fee is deducted)

Let’s do the math: say you’re a shopaholic and you spend the equivalent of €1,000 in one go (AED 4,130):

• That’s VAT of AED 206.5
• Administrative fee: AED 4.8
• Refundable VAT amount: (206.5 – 4.8) x 0.85 = AED 171

For €1,000 of shopping, you get back €41, which is a 4% “cashback.” It’s nice, but not exactly a windfall.

As for me, I bought a Swatch watch (AED 450, about €109, with AED 21.43 in VAT), so I can claim back (21.43 – 4.8) x 0.85 = AED 17.35 (€4.2).

As you can see, the refund is only worth it if you make a substantial purchase.

Here’s how to get your VAT refund.

At the time of purchase

• You can get a VAT refund on any purchase of at least AED 250 (about €60 as of November 2021).
• You’ll need to present your passport at the time of purchase (or at least your passport number if you don’t have it on you).
• The seller must give you a tax invoice that clearly shows the VAT amount (labeled “VAT” in English) along with a “tax free tag” (a sticker with a QR code).

At the airport

To get your VAT refund, you must leave the country within 90 days of your purchase. The claim must be made before you check in your luggage.

At the airport, before checking in, look for the “Tax Free Planet” kiosks.

The process is surprisingly simple: you just scan your passport (or enter your number).

The machine already knew my purchases—I didn’t even have to scan my receipts.

Then just choose your refund method:

• Either in cash (which isn’t very practical—who needs AED when you’re leaving the country?)
• Or by bank card: just scan the card you want the refund on, and the money will appear in your account within a few days.

5 minutes, tops!

The only potential hiccup: if a red light comes on, you’ll need to show your purchases to a Tax Free Planet employee who’s stationed right next to the machines (I imagine it’s triggered by a certain spending threshold).

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