From the Newsroom
Abu Dhabi – The United Arab Emirates government has approved a refund system of the Value-Added Tax (VAT) to tourists. The information was published this Thursday (11) by the Emirates News Agency (WAM).
The news outlet reported that the system will be adopted in this year’s Q4. The goal is to boost tourism growth, an important source of revenues to the country.
According to WAM, tourism accounted for 11.3% of UAE’s Gross Domestic Product (GDP) in 2017, or AED 154.1 billion (USD 42 billion). Last year, the country’s airports registered a passenger flow of 123 million.
The tax on the consumption of goods and services was implemented this year by the UAE, as a way of offsetting the loss of revenues caused by the drop in oil prices and controlling the public accounts. Upon adopting a refund system for non-resident foreigners, the UAE is taking a similar approach to other countries that receive tourists in great numbers.
Translated by Sérgio Kakitani