Taking the path to sustainable development is an important move the UAE aims to achieve. The UAE is at the forefront of its mission by making many resources paperless and reducing its carbon footprint. The country’s recent actions are another remarkable step. The UAE has become the first country to go paperless when it comes to tax refunds. The news went into effect on Wednesday.
UAE rolls out paperless tax refund
All receipts will be created electronically thanks to the system’s connection to the retailer. Visitors will no longer need to bring hard copies of their transaction records to be eligible for VAT refunds. The UAE has been successful again and has been the first to achieve this milestone.
More than 3.5 million printed invoices will replace digital invoices. It saves up to 5 minutes per customer compared to generating receipts. It also eliminates the possibility of human error. The system will save more than 16,800 trees and reduce carbon dioxide emissions by more than 4,200 tons per year.
Clients can complete transactions, get digital invoices, and share them with Planet Tax-Free. For purchases made at various hotels, malls and other retail establishments, an electronic tax system is incorporated. For an easy, fast and hassle-free experience when leaving the UAE, visitors can use one of the 100 self-service kiosks located at the port of departure.
Tourists can access their VAT refund online
The UAE’s Federal Tax Authority (FTA) has said that the 2022 tourism VAT refund transaction has doubled. Mainly tourists face the problem of tax rebates.
In 2018, the UAE implemented a value-added tax (VAT) of 5%. VAT is refundable on purchases made by travelers at participating stores when they leave the country.
To qualify for a VAT refund, visitors must spend at least AED 250. Additionally, there are many kiosks across the country where tourists can apply for a refund.