The Federal Tax Authority has confirmed that the digital refund system for tourists continues to expand across the UAE, yielding notable positive outcomes in recent months. The number of registered retail outlets linked to the system increased by 5.9%, reaching approximately 19,340 stores by the end of the first half of this year, compared to 18,260 stores at the same time last year.
Growth in Retail Participation
According to a recent press release, the number of retail outlets that connected to the tourist refund system during the first six months of 2026 totalled 449, down from 697 during the same period last year. However, over the past two and a half years, a total of 2,983 commercial outlets have linked to the system, indicating steady growth despite recent fluctuations.
Self-Service Machines on the Rise
As of the end of the first half of this year, there were 100 self-service devices for VAT refunds available to tourists, an increase from 93 devices at the same time last year. This marks a 7.5% rise over the year. Additionally, 23 new devices have been introduced in the last two and a half years, strategically placed in shopping centres, hotels, and tourist departure points across the nation.
Commitment to Continuous Improvement
Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority, stated, “The Authority is committed to continuous development of its systems and services, including the digital VAT refund system for tourists. Ongoing efforts are being made to improve the registration process for retailers. We are integrating new features to facilitate a fully digital registration process, making ours one of the most advanced systems globally.”
Enhancing User Experience for Tourists
Al Mulla highlighted that the enhancements have positively influenced the system’s performance. Tourists can now complete their transactions in just moments, receiving a digital invoice to share via the system before leaving the country. They can also utilise the self-service machines located at various departure points, as well as in many hotels and shopping centres, ensuring a swift and efficient process for VAT refunds.
A Vision for Future Growth and Efficiency
The Federal Tax Authority aims to continue its ambitious plans for digital transformation in tax services, aligning with government initiatives that strive for enhanced efficiency and quality in service delivery. This effort will contribute to fostering a supportive business environment and establish a pioneering model for the future of government work.
Key Beneficiary Countries
The Authority noted that five countries have produced the majority of tourists benefiting from the VAT refund service this year. These include India, the Russian Federation, Turkey, China, and the United States.
Innovative E-Commerce Integration
Recently, the VAT refund service for tourists has undergone several enhancements aimed at enriching user experience and increasing service efficiency. Notably, the online shopping platform “Noon” has been integrated into the VAT refund system, allowing tourists to claim refunds on their online purchases made while in the UAE—an innovative first on a global scale.