Tourists leaving the UAE can receive VAT refunds within one business day under a new artificial intelligence-powered system that cuts the waiting time from around nine days, the Federal Tax Authority (FTA) said.
The fully digital service is now operational at Dubai International Airport, Zayed International Airport in Abu Dhabi and Sharjah International Airport. It uses facial recognition, automated transaction checks and a mobile application to speed up the refund process.
How the new UAE tourist VAT refund system works
Tourists must download the Planet mobile application, register and submit images of their passport and bank card before requesting a refund.
At the airport, they scan a QR code displayed at designated tax refund service points to begin the process through the app.
The AI system checks transaction and travel information to determine whether a purchase requires physical inspection. Eligible claims that do not require inspection can be completed directly through the application without in-person verification.
If an inspection is required, tourists are directed to smart gates equipped with facial recognition technology. The system identifies the traveller and matches their details with the transaction before directing them to a self-service kiosk.
The FTA said the process can allow travellers to complete their refund procedures within minutes before departure, although the time needed may depend on whether additional verification is required.
AI helps reduce airport paperwork
The platform was introduced as part of the UAE’s efforts to reduce administrative procedures and expand digital government services.
According to the FTA, the system automatically matches invoice and travel information, reducing manual checks and helping identify transactions that may require further inspection.
It also offers multilingual support, with the system selecting an appropriate language based on the traveller’s nationality.
The authority said AI-based checks can help identify unusual transaction patterns and improve tax compliance while allowing eligible tourists to complete refunds more easily.
Tourist VAT refunds reach Dhs 4.2 billion
The FTA reported that tourist VAT refunds totalled approximately Dhs 4.2 billion between the scheme’s launch in 2018 and October 2026, across 25 million transactions.
Tourist satisfaction with the service reached 93 per cent during the first nine months of 2026, up from 92 per cent during the same period last year.
The authority expects around four million transactions to be processed through the scheme between November 2026 and October 2027, with the total refund value projected to reach approximately Dhs 692 million.
In 2025, the value of refunds increased by 8 per cent year-on-year, while transaction volumes rose by 5 per cent.
More shops and refund kiosks added
The number of retail outlets electronically connected to the scheme reached approximately 16,700, according to the FTA. Another 769 outlets joined during the first nine months of 2026, following the addition of 1,326 outlets in 2025.
The UAE currently has 98 tourist VAT refund self-service kiosks across shopping centres, hotels and departure points. Transactions completed through these kiosks account for 22.4 per cent of all transactions processed under the scheme.
The latest changes build on the UAE’s existing digital tourist refund service, which has undergone several updates since its introduction. The FTA also previously introduced a system for VAT refunds on eligible e-commerce purchases made by tourists during their stay in the country.
