The UAE's Federal Tax Authority has imposed a daily cash limit for VAT refunds at AED7,000 per tourist, the director announced today.
Tourists can submit their tax invoices on purchases they made at retail outlets registered within the scheme, along with their passport and credit card. Eligible applicants can recover an unlimited amount of taxes incurred if it's transferred to their card, while cash refunds are limited to AED7,000 per tourist per day.
The decision, issued by UAE's Minister of Finance Sheikh Hamdan, is aimed at providing speed and and accuracy in processing applications in the tax refuund scheme.
Khalid Ali Al Bustani, FTA Director General, said the limit helps to reduce the amount of cash in financial transactions, in line with international standards.
"These systems are key components in driving the continuous development of the UAE’s financial and economic sectors; they facilitate the flow of money and financial assets securely, increasing trust in financial transactions – both local and international,” said Bustani.
"The new decision abides by best practices implemented in advanced economies, which prioritise effective and holistic risk management and promote e-payment solutions,” he added.
Bustani said the installation of numerous self-service kiosks - where tourists can reclaim the VAT - at any of the exit ports covered by the 'Tax Refunds for Tourists Scheme' also help reduce the need for cash refunds.For all the latest business 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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