UAE tourist VAT refunds cut to one business day with new AI platform

The United Arab Emirates Federal Tax Authority has introduced a fully digital, artificial intelligence powered platform for tourist value added tax refunds, reducing the payout period from roughly nine days to one business day. Launched on Tuesday in partnership with Planet Tax Free, the system is currently active at Dubai International Airport, Zayed International Airport in Abu Dhabi, and Sharjah International Airport. The authority describes the initiative as the world’s fastest tax refund experience, enabling visitors to finalize departure procedures within minutes. Planet Tax Free serves as the exclusive operator of the UAE Tourist Refund Scheme, which permits travelers to reclaim the five percent value added tax paid on most goods and services before exiting the country. The new application utilizes AI technologies to streamline processing and minimize wait times. Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority, stated that the platform represents a major advancement in the tourist tax refund journey. He noted that the change enhances the visitor experience at their final point of contact with the nation. To utilize the system, tourists must first download the dedicated Planet mobile application. Registration involves verifying identity through a face scan and uploading images of both a passport and a bank card. Upon arrival at the airport, users scan a dynamic QR code displayed on screens at designated tourist tax refund service points. This action initiates the refund procedure directly within the app. The software automatically analyzes transactions to determine if physical inspection of purchased items is required under current legislation. If no inspection is needed, the traveler completes the request entirely through the application without in person verification. The refund amount is then disbursed via the chosen method. However, if specific purchases trigger a requirement for physical checks, the app notifies the user and directs them to Planet’s smart gates. These gates employ AI powered facial recognition to identify the individual and match their transaction details automatically. As the tourist passes through, the system verifies their identity and opens the gate, directing them to a designated self service kiosk. This process eliminates the need to repeat traditional identification steps. The platform also automatically matches invoice data with travel information to boost verification accuracy and reduce manual intervention. Additionally, the interface offers a multilingual experience, selecting the display language based on the tourist’s nationality. Security features within the technology check for unusual transaction patterns to support tax compliance and protect public funds. The launch aligns with the Federal Tax Authority’s broader strategy to expand AI adoption and advance its Digital Zero Bureaucracy Programme. This move builds upon previous updates to the scheme, which included the implementation of a fully digital refund system and the extension of VAT refunds to cover e commerce purchases made during a tourist’s stay in the UAE. The refund network continues to grow. Approximately 16,700 retail points of sale are now electronically connected to the scheme. During the first nine months of 2026, 769 additional retail outlets joined the program. This follows the addition of 1,326 outlets throughout 2025. The infrastructure also includes 98 self service kiosks located across shopping centers, hotels, and departure points. These kiosks handle 22.4 percent of all transactions processed through the Tourist Tax Refund Scheme since its inception in 2018. The shift to a one business day turnaround was effective as of October 2026. Previously, tourists waited approximately nine days to receive their money back. By integrating digital registration, facial recognition, and automated checks, the new system aims to remove bureaucratic hurdles. The Federal Tax Authority emphasized that the platform reduces the need for manual intervention while ensuring strict adherence to legal requirements for refund eligibility. The integration of these technologies allows for immediate processing of eligible claims, significantly altering the logistics of international travel finance for visitors to the region.