UAE Launches AI-Powered Tourist VAT Refund Platform, Cuts Processing Time to One Day
The UAE’s Federal Tax Authority (FTA) has launched an AI-powered digital platform for tourist Value Added Tax (VAT) refunds, introducing fully digital, paperless procedures and reducing the refund processing period from approximately nine days to one business day.
Developed in collaboration with Planet, the authorised operator of the UAE’s Tourist VAT Refund Scheme, the platform uses AI, facial recognition and data integration to simplify verification and accelerate refund processing. It is operational at Zayed International Airport in Abu Dhabi, Dubai International Airport and Sharjah International Airport.
The launch events at Zayed International Airport and Dubai International Airport were attended by senior officials from the FTA, airport operators and government entities.
AI streamlines the refund process
The platform allows tourists to register through Planet’s mobile application by scanning their faces and saving images of their passports and bank cards. When departing the UAE, tourists scan a dynamic QR code displayed at designated airport service points to initiate their refund requests.
AI directs each tourist through the appropriate process based on their transactions. Where purchases do not require physical inspection, eligible refunds can be processed directly through the application without in-person verification. Refunds are disbursed using the method selected by the tourist.
Where inspection is required, tourists receive instructions through the application and are directed to Planet’s smart gates. These gates use AI-powered facial recognition to identify travellers and retrieve their transaction details, directing them to designated self-service kiosks for the remaining procedures.
The system also matches invoice and travel information automatically, reducing manual intervention and waiting times. Its AI-powered multilingual interface selects an appropriate language based on the tourist’s nationality. AI is also used to identify unusual transaction patterns to support tax compliance and protect public revenue.
FTA highlights faster refunds
Commenting on the launch, the FTA’s Director General said, “The introduction of this new AI-powered platform marks a significant advancement in the tourist tax refund journey, enhancing the tourist experience at their final point of contact with the country.”
“It embodies a proactive government model that places customers at the heart of service design, supported by integration and data-sharing between government entities and partners to deliver outstanding services in accordance with best practices. This strengthens the innovation and digital transformation ecosystem, in line with the directives and prudent guidance of the UAE’s leadership to achieve the objectives of the Zero Government Bureaucracy Programme and redesign government services in accordance with the UAE Strategy for Artificial Intelligence,” he said. “These efforts also reinforce the UAE’s distinguished international standing as a leading global destination for tourism and shopping, supported by its safe environment, attractive landmarks, diverse events and tourism facilities.”
He added, “We are proud of the FTA’s success in accelerating tax refund procedures as part of its ongoing efforts to expand digital zero-bureaucracy initiatives. Indeed, as of October 2026, the UAE has become one of the fastest countries in the world for tourist tax refunds, with the total time required for tourists to receive VAT refunds on their purchases reduced to one business day, compared to approximately nine days previously. This achievement reflects the continuous improvements introduced by the Authority to enhance this smart service.
“The reduction in tax refund time and the launch of the new AI-powered platform build on the achievements made by the FTA in recent years. These began several years ago with the introduction of an enhanced, fully digital tourist tax refund system, which continues to undergo regular updates, followed by the launch of the world’s first VAT refund system for tourists’ e-commerce purchases made during their stay in the UAE. All these initiatives contribute to the continuous development of government operations, enhance quality of life in a sustainable environment and further eliminate bureaucracy in government services to promote community happiness and improve the wellbeing of residents and visitors,” he explained.
Refund scheme records AED 4.2 billion in returns
The FTA reported that tourist satisfaction with the refund service reached 93% during the first nine months of 2026, up from 92% during the corresponding period in 2025. Based on current performance indicators, the Authority expects approximately four million transactions, with a projected refund value of AED 692 million, to be processed between November 2026 and October 2027 following the latest enhancements.
Since the scheme was introduced in 2018, approximately AED 4.2 billion in VAT has been refunded to tourists through 25 million transactions, according to the FTA’s figures up to October 2026. The value of refunds grew by 8% in 2025 compared with 2024, while transaction volumes increased by 5%. The scheme now includes approximately 16,700 registered retail outlets electronically connected to the system. A further 769 outlets joined during the first nine months of 2026, following the addition of 1,326 outlets in 2025.
The UAE currently has 98 VAT refund self-service kiosks across shopping centres, hotels and tourist departure points. Transactions completed through these kiosks account for 22.4% of all transactions processed under the Tourist VAT Refund Scheme.
