The Federal Tax Authority (FTA) has switched on what it bills as the world’s first fully AI-powered digital platform for tourist VAT refunds, slashing payout times from an average of nine days to just one business day. The system went live simultaneously at Abu Dhabi’s Zayed International Airport, Dubai International Airport (DXB) and Sharjah International Airport on 20 October 2026 and was publicly detailed on 21 October. Developed with global payments provider Planet, the platform replaces paper receipts with biometric verification and real-time data pulls from retailers’ point-of-sale systems. Tourists scan passports and boarding passes in a mobile app or self-service kiosk; facial-recognition software then matches the traveller to their purchase history and authorises an instant refund to a credit card or digital wallet. For the UAE’s thriving retail sector—projected by Alpen Capital to hit AED 300 billion in sales this year—the faster refunds are expected to boost high-value shopping in the crucial fourth-quarter travel season. Luxury groups are already training sales associates to encourage same-day refund processing as a sales incentive. From a compliance perspective, mobility teams should note that claimants still need to export the goods within 90 days of purchase and that certain items (such as motor vehicles and boats) remain excluded. However, the AI platform automatically filters ineligible SKUs, reducing the risk of rejected claims. The launch aligns with the UAE government’s ‘Zero Bureaucracy Programme’ and its Artificial Intelligence Strategy 2031, underscoring a broader push to digitise end-to-end traveller touchpoints—from eVisa issuance to smart-gate immigration clearance—before Dubai hosts Expo 2030.
Source: Federal Tax Authority
