The United Arab Emirates Federal Tax Authority (FTA) processes around 8,110 refunds per day on value added-tax (VAT) paid on goods and services bought in the country, it was announced on Wednesday.
The UAE, along with Saudi Arabia, introduced VAT on January 1, 2018, as part of the region’s bid to diversify its revenue streams away from hydrocarbons. Last year, the FTA announced that the Tax Refunds for Tourists schemes, which allows tourists to claim a refund on VAT paid on goods bought during their visit, will be rolled out to all UAE airports and ports and to around more than 4,500 retailers across the country.
In a press statement issued by WAM, the state news agency, Khalid Ali Al Bustani, director-general of the FTA, said that as part of the authority’s efforts to manage and collect federal taxes, various tax refund mechanisms have been launched for legally eligible groups to recover VAT, including the Tax Refunds for Tourists schemes, of which nearly 8,110 transactions were processed on a daily basis.
Al Bustani also highlighted the success of the VAT Recovery on the Building of New Residences by UAE Nationals programme, adding that the FTA had received more than 800 applications, 375 of which were approved, allowing applicants to recover AED14.74 million ($4 million) in taxes incurred on the construction of their homes.
The statement was issued on Wednesday to mark 500 days since VAT was introduced across the UAE.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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