Dubai is famous for luxury malls, designer brands, and unbeatable shopping experiences. But what many visitors still don’t realise is that shopping in Dubai can actually save you money. If you are visiting the city as a tourist, you could claim up to Dhs35,000 back through the Dubai shopping tax refund scheme.
The UAE introduced a five percent Value Added Tax (VAT) in 2018, which applies to most goods and services, including shopping, hotel stays, fuel, and entertainment. While residents pay this tax as usual, tourists are eligible to reclaim a large portion of the VAT on items they take out of the country.
This guide explains everything you need to know about the Dubai shopping tax refund process, including who is eligible, what you can claim, and how to get your money back in just a few simple steps.
What Is the Dubai Shopping Tax Refund Scheme?
The Dubai shopping tax refund scheme allows tourists to reclaim VAT paid on eligible purchases made in the UAE. The system is fully digital and designed to be fast and hassle-free, especially for travellers passing through airports or seaports.
Tourists can receive up to 87 percent of the VAT paid on qualifying purchases. A small administrative fee is charged per transaction, but the savings still add up significantly, especially for high-value shopping.
The refund applies to goods that you export out of the UAE, not items consumed during your stay.
Who Can Claim a Tax Refund in Dubai?
To qualify for the Dubai shopping tax refund, you must meet a few basic conditions.
You must be a tourist visiting the UAE and not a resident. The purchases must be made during your visit and exported out of the country within 90 days of the purchase date. The goods should be unused and kept in their original condition.
If you meet these criteria, you are eligible to claim a refund regardless of whether you are shopping in luxury malls, local boutiques, or even online stores registered for tax-free purchases.
What Purchases Are Eligible for Tax Refunds?
Tourists can claim VAT refunds on most physical goods they take out of the UAE.
Eligible items include clothing, shoes, handbags, cosmetics, perfumes, electronics, watches, jewellery, and gadgets. Online purchases are also eligible as long as the retailer is part of the tax-free system and the items are exported.
However, VAT refunds cannot be claimed on services or items consumed within the UAE. This includes restaurant meals, hotel stays, spa treatments, petrol, and entertainment tickets.
How Much Money Can You Get Back?
Tourists receive 87 percent of the VAT paid on eligible purchases. A small fee of Dhs4.80 is deducted per tax-free transaction.
For example, if you spend Dhs10,000 on shopping, the VAT paid would be Dhs500. You can receive around Dhs435 back after the fee. For luxury shopping or multiple purchases, this amount can increase quickly, with refunds reaching up to Dhs35,000 for high spenders.
How to Claim a Tax Refund When Shopping in Dubai
Claiming a tax refund in Dubai starts at the store itself. The process is simple, but you must remember to follow each step carefully.
Step 1: Ask for a Tax-Free Purchase
When paying for your goods, inform the cashier that you want a tax-free purchase. Not all stores automatically apply it, so it’s important to ask.
Step 2: Show Your Passport or Travel Document
You will need to present your passport or a valid travel document during payment. The retailer will scan it to register the purchase under your name.
Step 3: Get the Tax-Free Tag
After payment, the store will attach a tax-free tag to your receipt. This tag is essential for validation later, so keep it safe.
How to Validate Your Purchases Before Leaving Dubai
Once you have completed your shopping, the next step is validating your purchases before departure.
Validation must be done before you check in your luggage, as authorities may ask to inspect the goods. The process usually takes only a few minutes.
Where to Validate Your Purchases
Validation kiosks and counters are available at all major exit points.
At Dubai International Airport, Planet Tax Free stands are located across all terminals. Terminal 1 has two counters, Terminal 2 has one, and Terminal 3 has two. If you are leaving by sea, validation points are available at Port Rashid seaport.
Step 1: Scan Your Passport
At the self-service kiosk, scan the same passport or travel document used during purchase. All eligible transactions will automatically appear on the screen.
You usually do not need to present paper receipts, as everything is stored digitally.
Step 2: Validate Your Purchases
Follow the on-screen instructions to validate your items. In some cases, staff may request to see the goods, so keep them easily accessible.
Step 3: Choose Your Refund Method
You can choose to receive your refund in cash or have it credited back to your bank card. Cash refunds are processed immediately, while card refunds typically take a few days to appear.
Important Rules You Should Know
There are a few important rules to keep in mind to avoid losing your refund.
You must leave the UAE within six hours of completing the validation process. If you do not depart within this timeframe, your refund will be cancelled automatically.
The goods must be exported out of the country and should not be used before departure. Always keep expensive items in your carry-on luggage in case inspection is required.
Why the Dubai Tax Refund Is Worth It
Dubai already offers competitive prices on luxury and international brands. When combined with the tax refund scheme, shopping becomes even more rewarding for tourists.
The process is digital, quick, and tourist-friendly, making it one of the easiest tax refund systems in the world. Whether you are buying gifts, upgrading your wardrobe, or investing in electronics, the savings can significantly reduce your overall travel expenses.
Final Thoughts
If you are visiting Dubai, the shopping tax refund is something you should not ignore. With a little planning and awareness, you can enjoy world-class shopping and walk away with thousands of dirhams in savings.
From designer fashion to everyday essentials, every eligible purchase brings money back into your pocket. Just remember to ask for tax-free shopping, validate your purchases before departure, and enjoy the benefits of smart shopping in Dubai.
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