The UAE’s Federal Tax Authority (FTA) has called on retailers, outlets and shops registered for value-added tax (VAT) to register in the government’s digital system of the Tax Refund Scheme for Tourists.
The tourist refund system will come into effect starting the fourth quarter of 2018.
The UAE’s FTA identified four basic conditions for registering for the digital system, it said in a statement, explaining that “the retailer must be registered with the Authority for VAT and have a tax registration number (TRN).
“The supplier’s sales of goods must not be excluded from the refund scheme as determined by the FTA, the retailer must submit a request to participate in the Scheme as determined by the FTA. Finally, the retailer must meet the financial credit requirements specified by the system operator and be committed to submitting Tax Returns and paying due taxes regularly,” the FTA said, naming the remaining three conditions.
Retailer memberships would be revoked from Tax Refund Scheme for Tourists if a retailer fails to meet their obligations “whether those stated in tax laws or in the contract between the system operator and the retailer,” the FTA stressed.
The Tax Refund Scheme for Tourists will be implemented by the FTA in cooperation with Planet, the global operator of the “Tax Free” system.