In Push for Digital, UAE Limits VAT Cash Refunds to AED 7000 Daily
In an attempt to provide speed and accuracy in processing applications of the VAT refund scheme, the UAE’s Federal Tax Authority has imposed a daily cash limit for VAT refunds per tourist.
When tourists submit their tax invoices on purchases they made at retail outlets registered within the tax scheme, they’ll get an unlimited amount of tax refunds if the purchases were on their credit card. However, cash refunds are now limited to only AED 7000 daily per tourist.
The Director General of the FTA, Khalid Ali Al Bustani, said that the limits help reduce the amount of cash in financial transactions in line with international standards.
There will also be numerous self-service kiosks where tourists can do the process by themselves, which will also reduce the need for cash in the VAT refunds process.