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VAT refund scheme: 4 conditions for UAE retailers to register

The Federal Tax Authority (FTA) on Saturday announced four conditions for retailers to register in the digital system of the Tax Refund Scheme for Tourists, which will come into effect as of the fourth quarter of this year.

The FTA set condition that the retailer must be registered with the FTA and have a tax registration number (TRN); the supplier’s sales of goods must not be excluded from the refund scheme; the retailer must submit a request to participate in the Scheme as determined by the FTA; and finally, the retailer must meet the financial credit requirements specified by the system operator and be committed to submitting Tax Returns and paying due taxes regularly.

The Authority is implementing the Scheme in cooperation with Planet.

In a press statement issued today, the Federal Tax Authority cautioned that a retailer’s membership in the Tax Refund Scheme for Tourists would be revoked if they fail to meet their obligations, whether those stated in tax laws or in the contract between the system operator and the retailer.

Khalid Ali Al Bustani, director-general, Federal Tax Authority, asserted that the past few days witnessed a great demand for registration in the Tax Refund Scheme for Tourists.

“The system operator will coordinate between retailers registered in the tax system and wishing to register for the Scheme, connecting them with ports of entry and exit all around the UAE,” he explained.

The FTA is hosting a meeting on September 25 in Ajman in an effort to maintain direct and constant communication with businesses, and introduce them to the terms and conditions for registering in the Tax Refund Scheme for Tourists, Al Bustani added.

“We have seen strong enthusiasm from retailers, outlets and shops across the UAE to register for the scheme, and look forward to seeing registrations grow,” said Gary Byrne, director of Worldwide Strategic Partnerships & New Markets at Planet.