UAE Launches AI Tourist VAT Refund Platform, Cutting Refund Time to One Business Day

The Federal Tax Authority has launched a new AI-powered digital platform for the UAE's Tourist VAT Refund Scheme, reducing the time required for eligible tourists to receive their refunds from approximately nine days to one business day. The new platform has been developed in collaboration with Planet, the authorised operator of the UAE Tourist VAT Refund Scheme, and introduces a fully digital and paperless refund journey supported by artificial intelligence and facial recognition technology.

The system is currently operational at:

• Zayed International Airport in Abu Dhabi;

• Dubai International Airport; and

• Sharjah International Airport.

  
  

The upgrade forms part of the FTA's wider programme to reduce administrative procedures and increase the use of digital technology across government tax services.

The most significant change for tourists is the speed of the refund. According to the FTA, as of October 2026 the total time required to receive a tourist VAT refund has been reduced to one business day, compared with approximately nine days previously. The airport validation process itself can be completed within minutes. The tourist may complete the validation and refund request at the airport in minutes, while the actual refund to the selected payment method can then be processed within the accelerated refund timeframe.

The FTA describes the development as placing the UAE among the fastest jurisdictions globally for tourist tax refunds.

The new process begins through Planet's smart mobile application. Tourists register by:

• scanning their face;

• capturing and storing an image of their passport; and

• adding their bank card details.

Once registered, the tourist can use the enhanced digital refund journey when departing the UAE through participating airports. At the airport, the tourist scans a dynamic QR code displayed at tourist VAT refund service points. The system then retrieves the relevant transaction information and uses AI to determine which verification process applies.

A significant feature of the new system is automated transaction assessment. AI is used to determine whether the tourist's purchases require physical inspection under the applicable rules. Where no inspection is required, the tourist can complete the refund process directly through the mobile application without attending an in-person validation desk. The tourist selects the preferred refund method through the application and the refund can proceed following successful digital validation.

This reduces the number of passengers who need to queue for manual checks at departure points.

Where the system determines that purchased goods need to be inspected, the tourist receives a notification through the application. The tourist is then directed to Planet's smart gates. These gates use AI-powered facial recognition to identify the traveller and link the individual automatically with the relevant tax-free transactions. The system subsequently directs the tourist to the appropriate self-service kiosk or verification process. This reduces the need to repeatedly present identity documents during the airport refund journey.

Artificial intelligence is also used to match invoice information with relevant travel data. According to the FTA, this allows the system to improve the accuracy of verification while reducing manual intervention. The platform can also identify unusual transaction patterns during the verification process.

This gives the FTA an additional compliance tool while allowing ordinary refund transactions to move through the system more quickly. The objective is therefore not simply faster processing, the technology is designed to combine simplified customer procedures with continued tax-control mechanisms.

The platform also uses AI to provide tourists with an appropriate language automatically based on their nationality. This builds on previous improvements to Planet's mobile application, which the FTA expanded during 2026 to support multiple languages. For a tourism market serving visitors from a wide range of countries, this can reduce difficulties caused by language during the refund and airport-validation process.

The new platform does not create a new entitlement to VAT refunds. The underlying conditions of the UAE Tourist VAT Refund Scheme continue to apply. Under the FTA's current service requirements, the tourist must generally:

• have entered the UAE as a tourist;

• be at least 18 years old;

• not be a UAE resident;

• make an eligible purchase from a retailer participating in the Tourist VAT Refund Scheme;

• spend at least AED 250 per eligible VAT refund transaction, excluding VAT;

• validate the transaction within 90 days from the tax invoice date;

• export the qualifying goods from the UAE; and

• present the purchased goods for inspection if requested. Federal Tax Authority

The upgrade therefore changes how the refund is processed, rather than fundamentally changing which purchases qualify.

The latest platform represents another stage in the digitalisation of the Tourist VAT Refund Scheme, which has operated in the UAE since 2018. Earlier developments included digital tax-free transactions, self-service kiosks and the expansion of VAT refunds to eligible e-commerce purchases made by tourists while staying in the UAE. By June 2026, approximately 19,340 retail outlets were electronically connected to the digital Tourist VAT Refund System. The latest AI platform extends that digitalisation to the final departure and validation stage.

The scale of the scheme has also increased substantially. According to the FTA, approximately AED 4.2 billion in VAT had been refunded to tourists between the scheme's launch in 2018 and October 2026, across around 25 million tax-free transactions. The Authority expects approximately four million transactions with a value of around AED 692 million to be processed during the one-year period from November 2026 to October 2027 following the latest improvements. Tourist satisfaction with the refund service reached 93% during the first nine months of 2026, compared with 92% during the same period in 2025.

NUR Advisory Note

Although the new platform is principally a government service for tourists, it also has practical implications for UAE retailers serving international visitors. The ability to offer efficient tax-free shopping forms part of the wider customer experience for tourists purchasing goods in the UAE.

Retailers participating in the Tourist VAT Refund Scheme should ensure that their internal processes remain properly integrated with Planet and that staff understand the requirements for creating eligible tax-free transactions. A practical review should cover:

• whether the retail outlet is registered in the Tourist VAT Refund Scheme;

• correct identification of eligible tourists;

• correct processing of eligible purchases;

• digital transmission of transaction information;

• staff understanding of the AED 250 minimum transaction requirement;

• handling of returns or exchanges involving tax-free transactions;

• recordkeeping and VAT treatment; and

• communication with tourists regarding validation before departure.

Retailers should also avoid presenting the new AI system as meaning that every tourist purchase automatically receives a VAT refund.

Eligibility remains dependent on the applicable Tourist VAT Refund Scheme rules, and selected purchases may still require inspection before the tourist leaves the UAE.

For tourism-facing businesses, however, reducing the refund period from approximately nine days to one business day removes a significant friction point in the tax-free shopping experience and strengthens the UAE's position as a destination for international retail spending.