The Effect of VAT Refund for Tourists on UAE’s Economy

      Published on Sunday, 11 November , 2018      365 Views     
The Effect of VAT Refund for Tourists on UAE’s Economy

  • Gulf News

United Arab Emirates is the most preferred tourist destination in the Middle East and to continue its positive momentum, tourists visiting the country will be entitled to claim back any Value Added Tax (VAT) payments they are charged.

“The UAE has become a regional magnet for foreign investors and tourists, and the move to refund VAT, yet again shows UAE’s strategic ability to drive the growth of the country,” said Tejas Goenka, Executive Director, Tally Solutions – a leading international accounting and compliance software provider.



Trusted by more than 1.2 million businesses globally, Tally Solutions includes a list of 50,000 satisfied clients across GCC that use its VAT software – Tally.

ERP 9 Release 6.4 for effective compliance with VAT regulations. Since the launch of VAT, thousands of businesses in the UAE have been using Tally’s software to comply with VAT regulations.

It has been observed that as many as 140 countries around the world have VAT, according to financial firm KPMG. Some Asian countries place dedicated VAT refund stations in international airports, where foreigners can present receipts and get a refund for purchased items. Others provide tax refund desks within stores. Countries like Australia, Germany, France, Singapore, Japan offer overseas visitors tax refunds for purchases made beyond a prescribed threshold and subject to other conditions.

The UAE’s Federal Tax Authority (FTA) is also working on an advanced integrated digital system to set up a direct connection with points of sale as well as with all UAE ports of entry, allowing the global operator to coordinate among retailers registered with the FTA and enable tourists to submit refund requests for their purchases.

“Internationally, most countries that implement VAT have an online robust system connecting multiple refund agencies and retailers on a single platform, offering tourists a seamless and hassle-free experience while verifying, processing and disbursing the tax refunds. We are confident that the new digital system to be implemented by FTA will be at par with international standards, offering tourists and retailers easy access to claim and release refunds. Since the launch of VAT, thousands of small companies in the UAE have switched to digital platforms from manual systems, demonstrating the country’s global competitiveness,” added Tejas.

While the UAE’s decision to refund value-added tax (VAT) will boost tourism, it will serve as a buoyant force for the meetings, incentives, conferences and exhibitions (Mice) industry as well according to Tejas.

“The UAE’s leadership has always pioneered initiatives that contribute to the growth of the country. As such, the decision to refund VAT will significantly enhance the competitiveness of the MICE industry as well and increase the capacity to attract niche global events, exhibitions and conferences,” continued Tejas.



Tourism contributes heavily to UAE’s economy. In 2017, nearly 16 million people visited Dubai, while a further 123 million passengers travelled through the country’s airports. In total, the tourism sector contributed 11.3 per cent to the UAE’s GDP in 2017, equivalent to Dh154.1 billion. With the latest announcement to refund VAT, UAE’s tourism sector will not only witness a boost, but also allow greater flexibility to the visitors, enhancing their overall experience in the country.


Category Gulf News, UAE | 2018/11/11 latest update at 2:50 AM
Source : Albawada | Photocredit : Google
366 Views
Comments Add comment



Gulf Media

Related Articles

The editorial staff of Bahrain Today would like to give all of its readers from Gulf and Bahrain and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Bahrain Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Bahrain, the Gulf and the world.


Three Bahrainis die in Saudi Arabia car crash
Bahrain Bahrain news

Three Bahrainis die in Saudi Arabia car crash

Three Bahraini nationals died in a road crash in Saudi Arabia, Bahraini media reported on Thursday. The three…

Kaws’ Holiday lands in Doha

Bahrain hospital losses weigh on UAE’s Amanat net profit

Here’s Why Qatar Airways Scrapped Inflight Duty Free

Al Sissi, Bahraini king laud Yemen pact King

Al Sissi, Bahraini king laud Yemen pact

Egyptian President Abdul Fattah Al Sissi and Bahraini King Hamad Bin Eisa Thursday night hailed a peace accord…

Bahrain: Sustainable Energy Authority Established Bahrain News

Bahrain: Sustainable Energy Authority Established

Bahrain’s King Hamad bin Isa Al Khalifa issued Thursday a royal decree appointing Dr. Abdulhussain bin Ali Mirza…

HM King opens second session of 5th Legislative Term King

HM King opens second session of 5th Legislative Term

His Majesty King Hamad bin Isa Al Khalifa patronised here today, in the presence of His Royal Highness…

HM King issues decree appointing Electricity Minister King

HM King issues decree appointing Electricity Minister

His Majesty King Hamad bin Isa Al Khalifa issued Royal Decree 84/2019, appointing Wael bin Nasser Al-Mubarak as…

GULF TV

Popular in GULF TV

7 Action Movies You Can Not Miss In 2019

785 Views

7 Action Movies You Can Not Miss In 2019  

Latest videos in GULF TV

Events

Bahrain events

Lifestyle

Culture

Bahrain Culture, Bahrain, Bahrain News

Sport

Science & Technology

Government

Bahrain Government, Bahrain Government News, Bahrain News, Gulf News, News, Bahrain News