UAE cuts tourist VAT refunds to one business day with a new AI-powered platform

On 20 October 2026 the UAE Federal Tax Authority (FTA) announced the launch of an integrated, AI-powered digital platform for tourist VAT refunds, which it describes as the world's first of its kind. The platform was developed with Planet, the authorised operator of the Tourist Tax Refund Scheme, and is operating at Zayed International Airport in Abu Dhabi, Dubai International Airport and Sharjah International Airport.

Abdulaziz Mohammed Al Mulla, Director General of the FTA, said the platform "marks a significant advancement in the tourist tax refund journey".

The key facts

• Faster refunds: the total refund time is now one business day, compared with approximately nine days previously.
• Fully digital and paperless: tourists register in Planet's upgraded mobile app, then start the refund at the airport by scanning a QR code displayed at refund service points.
• Automatic refunds: eligible transactions that do not require inspection are refunded automatically, with invoice and travel data matched automatically. Where a check is needed, AI facial recognition, smart gates and self-service kiosks are used.
• Retail network: approximately 16,700 retail stores (points of sale) are registered with the FTA and electronically connected to the scheme. 769 retail outlets joined in the first nine months of 2026, after 1,326 joined during 2025.
• Scale: the FTA expects approximately four million transactions and approximately AED 692 million in refunds over the year from November 2026 to October 2027.
• Satisfaction: tourist satisfaction reached 93% in the first nine months of 2026, compared with 92% in the same period of 2025.

Why it matters for international clients

The UAE already allows tourists to reclaim VAT on purchases through this scheme, and the FTA has previously launched a VAT refund system for tourists' e-commerce purchases made during their stay. A refund that is paid within one business day and handled almost entirely on a phone makes shopping in the UAE more attractive to visitors.

For founders and investors from Europe, North America, Australia, Russia and the CIS who are opening retail, fashion, luxury, electronics or hospitality businesses in the UAE, this supports spending by international visitors, a key customer group. It is also another example of the FTA investing in digital, low-friction tax administration, in line with the Zero Government Bureaucracy Programme and the UAE Strategy for Artificial Intelligence.

What to do

1. If you sell to tourists, consider whether your points of sale should be connected to the Tourist Tax Refund Scheme, as around 16,700 stores already are.
2. Make sure your VAT registration, invoicing and record-keeping are in order before you open. Our VAT service covers registration, returns and day-to-day compliance.
3. Prepare for the national e-invoicing rollout. See our e-invoicing page.
4. If you are still choosing a location or licence for a retail business, read our guide on free zone or mainland.

Our company setup service covers structuring, licensing and ongoing compliance. Contact us to discuss your UAE retail or hospitality plans.

Sources

• Federal Tax Authority: FTA launches world's first-of-its-kind AI-powered digital platform for tourist tax refunds (20 October 2026)
• The National: UAE's new AI platform to slash VAT refund time for tourists to one day (21 October 2026)

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