July 10 2019

VAT maximum amount of cash refund reduced for tourists

Source: IBFD Tax Research Platform News

The Federal Tax Authority recently issued a new decision which reduces the daily limit of VAT refunds for tourists. Accordingly, the daily limit of VAT refunds for tourists is reduced from AED 10,000 to AED 7,000. The requirement to purchase goods from the same taxable person with a minimum value of AED 250 is still applicable. The taxable person must also be registered with the Merchant Tourist Refund Scheme.

The new decision is applicable as of 1 June 2019.