UAE tourist VAT refunds cut to one business day with new AI platform

Dubai: Tourists shopping in the UAE can now receive VAT refunds within one business day, down from about nine days previously, as the Federal Tax Authority introduces an AI-powered platform that allows eligible claims to be completed through a mobile app.

The system is operational at Dubai International Airport, Abu Dhabi’s Zayed International Airport and Sharjah International Airport. Visitors whose purchases do not require inspection can finalise their refund requests through the app without in-person verification.

Developed with Planet, the authorised operator of the UAE’s Tourist Tax Refund Scheme, the platform combines digital registration, facial recognition and automated checks of purchase and travel information. The FTA said tourists can complete the departure procedures within minutes, while receipt of the refund takes one business day.

What tourists need to do

The process starts with downloading Planet’s mobile application for tourist tax refunds in the UAE. Visitors register by scanning their face and capturing and saving images of their passport and bank card in the app.

When they arrive at the airport to leave the country, tourists scan a dynamic QR code displayed on screens at tourist tax refund service points. This starts the refund process through the application.

The system then checks their transactions and determines whether any purchases require inspection under the applicable rules. If no inspection is necessary, visitors can complete the request directly through the app and select their preferred refund method.

That means some tourists will need only the registration and airport QR-code steps to complete their claim. Others will receive instructions through the app for further verification.

When extra checks are required

Visitors whose transactions require inspection will be directed to Planet’s smart gates, which use AI-powered facial recognition.

As a tourist passes through a gate, the system recognises their identity and transaction details. The gate then opens and directs them to a designated self-service kiosk, removing the need to repeat conventional identification procedures.

The FTA said the platform automatically matches invoice and travel information to improve verification accuracy and reduce manual intervention. It also provides a multilingual experience, automatically selecting a language based on the tourist’s nationality.

Alongside faster processing, the technology checks for unusual transaction patterns. The authority said this supports tax compliance and protects public funds while simplifying the refund process.

From nine days to one

Abdulaziz Mohammed Al Mulla, Director General of the FTA, said the launch changes how visitors complete their final shopping-related formalities before leaving the country.

“The introduction of this new AI-powered platform marks a significant advancement in the tourist tax refund journey, enhancing the tourist experience at their final point of contact with the country.”

He said the time required for tourists to receive refunds had fallen to one business day as of October 2026, compared with approximately nine days previously.

The launch builds on earlier changes to the scheme, including a fully digital refund system and the introduction of VAT refunds for tourists’ e-commerce purchases made during their stay in the UAE. It also forms part of the authority’s work under the Digital Zero Bureaucracy Programme.

More shops join the scheme

The refund network now includes approximately 16,700 registered retail points of sale electronically connected to the scheme.

During the first nine months of 2026, another 769 retail outlets joined. That followed the addition of 1,326 outlets throughout 2025.

The network also has 98 self-service kiosks across shopping centres, hotels and departure points. These kiosks account for 22.4 per cent of transactions processed through the Tourist Tax Refund Scheme.

Since the scheme launched in 2018, VAT refunds to tourists have reached approximately Dh4.2 billion across 25 million transactions up to October 2026. Those transactions were processed using tourist tax refund tags issued by participating retailers.

Dh692 million in refunds projected

The FTA expects the scheme to process approximately four million transactions between November 2026 and October 2027, with a projected refund value of about Dh692 million.

The forecast follows growth in both the value and volume of refunds. In 2025, the amount refunded rose 8 per cent compared with 2024, while transaction volumes increased 5 per cent.

Tourist satisfaction with the service reached 93 per cent during the first nine months of 2026, up from 92 per cent in the same period a year earlier.

For departing visitors, the next step depends on the app’s assessment of their purchases: complete the claim digitally if no inspection is needed, or follow its directions to the smart gates for further checks.