Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists (tax law)

Article (1)  
Definitions  
In application of Provisions of this Resolution, the following words and phrases shall have the 
meanings assigned to them, unless the context indicates otherwise:  
State  : The United Arab Emirates.  
FTA  : The Federal Tax Authority.  
Chairman  : Chairman of the FTA Board of Directors.  
VAT  : The Value Added Tax.  
GCC  : All states that enjoy the membership of GCC in accordance with the 
statutes of GCC countries . 
Applying Countries  : GCC states that apply VAT Law under an issued legislation . Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists  2 
 Tourist Coming 
from Abroad  System  : Any natural person who is not a resident in the State or of any other 
applying State and is not a member of a flight or naval crew; and 
leaves the State to outside the applying one.  
System  : The operations under which VAT Refund mechanism shall be 
provided to the tourist who is coming from abroad . 
Operator  : Service Provider(s) who are contracted to set up and operate the 
system in the state . 
Items  : Physical personal possessions . 
Retail Dealers  : VAT -registered Business es in the State which supply items . 
Purchase Without 
VAT  : Any purchase of any item by the tourist who is coming from abroad 
for the purpose of refunding the paid VAT using the system . 
Export  : Items departure from the state . 
Tax Period  : The specified period over which VAT shall be calculated and paid. 
The tax that was levied under Federal Decree -Law  No. (8) of 2017 
concerning Value Added Tax and its payment date to FTA . 
Output Tax  : The supply tax that is levied by a retail dealer.

Article (2)  
System Commencement Date  
The President shall issue a decision specifying the Commencement Date of the system providing 
that it shall be no later than 1 January 2019.

Article (3)  
System Mechanism  
1. The person shall meet all the following conditions to be qualified to refund VAT using the 
system:  
a. To meet the conditions that are stated in Clause No. 2 of Article No. 68 of the referred 
Cabinet Resolution No. (52) of 2017.  
b. To purchase the items from a retail dealer who participated i n the system.  Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists  3 
 c. Items shall be purchased from the retail dealer in accordance with the requirements that 
will be specified in a presidential decision.  
d. Items shall be exported in accordance with the requirements that will be specified in a 
presidential decision.  
e. Such Items shall not be excluded by FTA from the system.  
2. Each retail dealer who meets the participation requirements specified by the FTA shall have the 
right to participate in the system.  
3. If the tourist who is coming from abroad exp resses his wish to the retailer, who participates in 
the system, to purchase without VAT, the retailer shall give the tourist the necessary documents 
to claim VAT refund using the system as determined by FTA. These documents include tax 
invoice that meets all the requirements stipulated in article (59) of the referred Cabinet 
Resolution No. (52) of 2017.  
4. The tourist coming from abroad shall apply for a direct VAT refund from the operator. The 
operator in turn is required to refund the money upon receipt of the reasonable and sufficient 
evidence as specified by FTA, on which the tax will be refunded to the tourist coming from 
abroa d. 
5. The Operator may charge fees to the tourist coming from abroad against refund management 
using the System. He may also deduct t hese fees from the amount to be refunded to the tourist 
coming from abroad in accordance with the President Decision; providing that these charged 
fees shall not exceed what is approved by Prime Minister.  
6. The operator shall cooperate with the customs depar tments of the State in cases in which the 
tourist coming from abroad have to show the goods for which he wishes to recover VAT,  which 
may require verification and inspection in accordance with the conditions determined by FTA . 
7. Customs departments shall coo perate with FTA and the Operator concerning verification and 
inspection in accordance with the conditions determined by FTA.  
8. If the operator refunds the amount of VAT related to a purchase without VAT to a tourist 
coming from abroad in accordance with this  Article properly, the operator may demand the 
retailer, who sold the relevant items to the tourist coming from abroad, to directly pay the 
amount of the refunded tax.  Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists  4 
 9. If the retail dealer pays the VAT amount to the Operator properly in accordance with thi s 
Article, the retail dealer shall be able deem the VAT amount as a deduction from the Output 
Tax that is to arise in the Tax Period in which the refund amount has been paid to the tourist 
coming from abroa d. 
10. The FTA may:  
a. Specify the requirements including : procedural requirements; evidentiary, verification, 
documentation and record keeping requirements which the tourist who is coming from 
abroad, retailer, operator and any other person required to meet in order to apply the 
system.  
b. Enter into agreements wi th any person and specify the necessary conditions and 
procedures related to system operation.

Article (4)  
System Restrictions  
The President shall issue a decision specifying the minimum amount of money that shall be applied 
to refund requests in accordance with the System.

Article (5)  
Issuance of Executive Resolutions  
The President shall issue the necessary decisions to implement the provisions of this Resolution.

Article (6)  
Repeals  
Any provision contrary to or inconsistent with the provisions of this Resolution shall be repealed.  
 
  Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists  5

Article (7)  
Provisions of the Resolution Enforcement  
The provisions of this Resolution shall come into force as of the date on which it is issued and shall 
be published in the Official Gazette.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mohammed  bin Rashid Al Maktoum  
Prime Minister  
 
Issued by us:  
On: 11 Dhul Qidah 1439  A.H. 
Corresponding to: 24 of July 2018  AD