Claiming tax refunds on purchases made in a foreign country is one way to save money while shopping abroad. However, I generally ignore it because I don’t usually make big purchases, and even when I do, filling out forms can be a hassle.
But during my recent trip to Dubai, I gave it a try, and it was an extremely smooth experience. Here’s everything you need to know:
How it works?
“Planet” Tax Free is the service authorized by the UAE government to operate the Tourist Refund Scheme. There are basically two steps to it:
At Merchant: While shopping, you’ll need to mention that you’re looking for a VAT refund. The merchant will ask for your passport and give you a slip.
At Airport: You can claim the VAT through automated kiosks or manually at the Planet Payment counters located both airside and landside.
Terms & conditions:
A fee of AED 4.80 per tag would be charged
Minimum spend: 250 Dirhams
Goods that are consumed partially or fully are not eligible.
Goods not accompanied by tourist while leaving UAE are ineligible.
Merchant Experience
While at the billing counter, the merchant asked for my passport and fortunately accepted my digital copy. It took him a few minutes to go through the process, and then he gave me a receipt that showed the VAT amount that I can claim.
Airport Experience
As soon as I entered the DXB airport – Terminal 1, I noticed the Planet Payment’s counter (landside) which was fortunately empty at that time.
The executive asked for my passport and flight details. He quickly punched in my passport number on his handheld tablet and said it was already approved. Then, he took my credit card number to initiate the refund and said it was done.
The whole process took hardly 5 minutes.
However, someone else I know missed this counter and went to the airside counter. He had some five items and was asked to show them, which, of course, was not possible as they were in the checked-in luggage. So he was not given the refund for one of the items, which I think is a fair decision.
In short, I understood that when you have fewer products, the system auto-approves it, while it might trigger a manual check when you have multiple items.
Refund
Refund kicked in about 3 days directly to my credit card and their website is useful to understand the fee charged, etc.
While it’s a small amount due to a minor purchase and the fact that VAT is only 5% in the UAE, it could amount to few thousands if it were a European country.
Bottomline
The tax (VAT) refund process in the UAE is entirely digital and very user-friendly compared to some other countries that still use paper processes.
For example, when I previously tried to visit the tax refund counter in Dublin, Ireland, the queue and rush in the area made me not even bother spending time on it.
Interestingly, “Planet” is actually based out of Galway, Ireland. It’s a bit weird that I didn’t find them when I was in Ireland. Not to mention, they operate in many more countries worldwide.
Do you have the habit of claiming Tax Refunds while purchasing goods in a foreign country? Feel free to share your experiences in the comments below.