Where to shop tax-free in Dubai?

What is a tax refund on purchases?

VAT is a type of tax on goods and services that is paid directly at the time of purchase of a product. It is a well-known tax around the world, although not everyone is aware of the possibility of making purchases abroad with the option of a refund. Since 2018, the United Arab Emirates has had a VAT rate of 5%. Can tourists shop without VAT in Dubai? Yes, which is why every tourist has the right to reclaim this amount at the airport or other border crossing when leaving the country, provided they meet the requirements set by the UAE government. In today's article, we will discuss exactly how tax refunds work in Dubai, so that you know how to shop tax-free in Dubai before your holiday.

Before you go shopping in Dubai, be sure to read our guide on everything you need to know about shopping in Dubai.

How do duty-free zones work in Dubai?

Tax-free shopping in Dubai – which purchases are eligible for a tax refund in Dubai? You can get a tax refund on almost all goods purchased in shops in Dubai, with certain exceptions: alcoholic beverages and tobacco products, items that have been used or damaged during transport, and items purchased in a duty-free zone. Why are duty-free shops in Dubai excluded? When you buy a product in a duty-free shop, you do not pay customs duty or tax, so you do not need to claim a refund.

Tax-free shopping in Dubai – a guide

Duty-free zones in the UAE and tax-free shopping are little-known topics and rarely covered in the media. This is a shame, because it means that tourists can save a lot of money on purchases made during their holidays. Before we move on to the rest of the guide, let's answer two questions that are important from the perspective of future buyers:

• What products can you buy tax-free in Dubai? In Dubai, you can buy tax-free items such as jewellery and gold, electronics, clothing, cosmetics and perfumes, watches, sports equipment and luxury goods, as well as souvenirs and traditional products such as spices and dates.
• Where are the duty-free shops in Dubai? Duty-free shops in Dubai can be found in all three terminals of Dubai International Airport, with the largest selection in Terminal 3. The same shops can also be found at Dubai Al-Maktoum Airport.

Where can you shop tax-free in Dubai?

Where are the tax-free shops in Dubai? The VAT refund system in Dubai operates in all large shops that sell products officially. Small shops and micro-businesses may be exceptions. Shops that allow VAT-free shopping in Dubai must be part of the Planet Tax Free programme and have special markings so that tourists can easily identify the possibility of obtaining a 5% refund on the fee.

How does tax-free shopping work in Dubai, step by step?

How to shop tax-free in Dubai? How can you get a VAT refund for purchases in the United Arab Emirates? First, you must meet several conditions:

• As a foreign tourist, you cannot be a resident or citizen of the United Arab Emirates.
• You must be at least 18 years old.

Where to claim VAT refunds in Dubai? Now let's take a look at the process of claiming VAT refunds for purchases in Dubai:

• You make your purchases at one of the many duty-free shops in Dubai that offer the Planet Tax Free label and tax refunds. Remember to ask for VAT-exempt purchases.
• The minimum amount for such purchases is AED 250.
• When shopping, show your passport to enter your payment into the Dubai tax-free system.
• The back of your receipt will have a ‘Tax Free’ label.
• An employee will prepare a digital form for VAT-exempt purchases.

You can receive your VAT refund at one of the Planet Payment points located at airport, land or sea borders in the UAE or at self-service kiosks at DXB, DWC and Dubai Mall airports. The time limit for receiving a VAT refund for purchases in Dubai is a maximum of 90 days from the date of the transaction. There is a maximum VAT refund limit for purchases of AED 35,000 per adult during your stay. Applications can only be submitted digitally. The most efficient way to claim a VAT refund for purchases in Dubai is to use the Planet Payment self-service kiosks. These kiosks can be found at both Dubai airports, as well as at the Dubai Mall. At the kiosk, after entering your tax invoice details, passport and payment card information, the refund will be processed automatically. The kiosk has no limit on payment card transactions, but cash refunds are limited to AED 10,000 per day.

As you can see, tax-free shopping in Dubai is simple and intuitive. It allows you to save a lot of money. The same goes for travel packages to Dubai. The package includes: accommodation in a private apartment in Dubai Marina, a package of attractions, insurance and the assistance of a English tour guide throughout the trip, all at a much lower price than if purchased separately.

What are the most profitable VAT-free purchases in Dubai?

Duty-free shops in Dubai and VAT-free shopping are a very popular way for tourists to save money. What do people buy most often and what is the most profitable? Looking at the price difference between Europe and Dubai, the most profitable products to buy VAT-free in Dubai are: electronics, especially the latest phones and computers, branded clothing and perfumes, cosmetics from well-known companies, sports equipment and luxury goods such as jewellery, gold and silver. Now you know where to shop tax-free in Dubai, but do you know where to buy attractions and accommodation in Dubai at the best price? Two Continents offers attractions in Dubai, such as tickets at the lowest prices on the market and original tours of the highest quality, as well as accommodation in Dubai in private apartments with views from up to the 77th floor.

It's not just in the city that you can buy something tax-free. You can also shop at Dubai Airport in the duty-free zone. Savings on such purchases can be as high as several percent, which is why tax-free shopping when departing from Dubai is so profitable. What is the most profitable to buy in Dubai Duty Free shops? Read our guide on what to buy at Dubai Airport. Are there duty-free shops outside the airport in Dubai? No, so if you plan to shop in the duty-free zone, it will be more convenient to do so at Dubai Airport before departure.

Questions and answers (FAQ):

• What are the rules for tax-free shopping in Dubai?

The VAT refund system for purchases in Dubai is simple and easy to understand. All you have to do is make purchases in a designated shop for at least AED 250, inform the salesperson of your intention to reclaim the tax, receive a special mark on your receipt, and then together with the salesperson, head to a dedicated Planet Payment point or self-service kiosk, where you can claim your tax refund by providing all the required information.

• Is tax-free shopping available in shopping centres?

The vast majority of shops in the United Arab Emirates offer VAT refunds. Most of them are located in shopping centres, where it is easiest to apply for a tax refund. To take advantage of this offer, shops must be part of the Planet Tax Free programme. Micro-enterprises and small shops may be exceptions.

• How to take advantage of tax refunds in Dubai?

You are only a few simple steps away from making tax-free purchases in Dubai. First, you must be a foreigner, be at least 18 years old, make purchases for at least AED 250 and inform the seller that you wish to take advantage of the 5% VAT refund. That's it, you can now apply for a tax refund on your purchases.