Cabinet approves the application of the VAT refund system for tourists



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The Council of Ministers adopted a decision to implement the value-added system for tourists, which will include integrated systems for the direct link between shops and stores with the country-wide recovery system . The decision of the Council of Ministers to monitor the growth of the tourism sector in the country and strengthen its position as a global destination and destination for tourists where the system will be applied VAT refund of 5% Taxable purchases for tourists in cooperation with an international institution specializing in tax refund services from October this year after completion of the procedures in cooperation with the relevant institutions and authorities.

Non-resident tourists from abroad can refund value-added tax Participants in the system should not be exempted from the tax system through dedicated outlets that are advertised by the government. federal tax when the system is launched.

The tourism sector contributes directly to the local economy, The total share of the tourism sector in the country's gross domestic product (GDP) was 11.3% in 2017, or 154.1 billion dirhams.

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