Federal Tax Authority
Launches World’s First-of-Its-Kind AI-Powered Digital Platform for Tourist Tax
Refunds
· Abdulaziz Al Mulla:
The new platform offers the world’s fastest tax refund experience and embodies
a proactive model aligned with the objectives of the Zero Government
Bureaucracy Programme
· Tourist tax refund
time reduced to one business day, compared to nine days previously, following
continuous improvements to the smart service
UAE, 20 October 2026:
The Federal Tax Authority (FTA) has launched a new, integrated digital platform
powered by artificial intelligence (AI) for Value Added Tax (VAT) refunds to
tourists, the latest of its kind worldwide. The launch forms part of the FTA’s strategy
to expand the adoption of AI technologies, continuously enhance the efficiency
of its operational systems and advance its initiatives under the Digital Zero
Bureaucracy Programme. These efforts align with the directives and prudent
guidance of the UAE’s leadership to achieve global influence in areas of government
operations, while also strengthening the country’s competitiveness across all
sectors.
The
launch events of the new smart platform at Abu Dhabi’s Zayed International
Airport and Dubai International Airport (DXB) were attended by His Excellency Lieutenant
General Mohammed Ahmed Al Marri, Director General of the General Directorate of
Identity and Foreigners Affairs in Dubai; His Excellency Abdulaziz Mohammed Al
Mulla, Director General of the FTA; Sultan Al Dhaheri, Senior Vice President – Operations
at Abu Dhabi Airports; Majed Al Joker, Chief Operating Officer of Dubai Airport (DXB); Jorg
Oppermann, Acting Chief Operations Officer at Abu Dhabi Airports; and Malek Al
Madani, Executive Director of Government Services Quality Monitoring and
Community Engagement, as well as other senior officials.
The new
smart platform, launched in collaboration between the FTA and Planet, the
authorised operator of the VAT Refund Scheme for Tourists, offers the world’s
fastest tax refund experience for tourists through fully digital, 100%
paperless procedures. This includes verification and data entry through
Planet’s enhanced smart mobile application, alongside AI-powered facial
recognition technology. It is now operational at Zayed International Airport in
Abu Dhabi, Dubai International Airport and Sharjah International Airport.
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.
“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.”
Smooth and Fast Experience
The
FTA outlined how tourists can use the new smart platform through a series of
simple, clear and exceptionally fast steps.
Step
One: Tourists download the Planet smart mobile
application, designed specifically for tourist tax refunds in the UAE, and
register by scanning their face and capturing and saving images of their
passport and bank card in the application. Upon completing this step, tourists
become eligible to benefit from the world’s first integrated AI-powered VAT
refund journey for tourists.
Step
Two: Upon arriving at the airport for departure,
tourists scan the dynamic Quick Response (QR) code displayed on numerous
screens located at tourist tax refund service points throughout the airport.
Once the QR code is scanned, the refund procedures begin immediately through
the Planet smart application.
AI
technology plays a key role in the new tourist tax refund platform by directing
each tourist to the appropriate processes, based on the nature of their
transactions. It also identifies transactions eligible for automatic tax
refunds where no purchases require inspection to verify their eligibility under
the applicable legislation.
This
is achieved through data integration between relevant smart systems. If no
inspection is required, tourists need only to complete the first two steps,
without proceeding to a third. They can finalise their refund request directly
through the application without any in-person verification. The refund amount
is then disbursed through the preferred refund method selected by the tourist
via the smart mobile application.
Step
Three (where verification is required): If
a tourist’s transactions require inspection, they are notified through the
smart application and automatically directed to Planet’s smart gates, which are
equipped with AI-powered facial recognition technology. As tourists pass
through the gate, their faces are scanned and their identities and transaction
details are automatically recognised, eliminating the need to repeat
conventional identification procedures. The gate then opens, directing each
tourist to their designated self-service kiosk and providing a unique
experience tailored to each individual.
Simplifying Verification Requirements
The
FTA explained that the new smart platform uses AI technologies to reduce
procedures, integrate steps and simplify verification requirements. Through
smart verification, invoice and travel information are automatically matched,
enhancing verification accuracy and reducing the need for manual intervention.
Waiting times have also been reduced through faster processing of refund
requests, enabling tourists to complete all refund procedures within minutes
before departure. The platform also offers a multilingual experience powered by
AI, which automatically provides each tourist with the appropriate language
based on their nationality.
The
FTA also noted that, to protect revenues and ensure the accuracy and efficiency
of tax transactions, the smart platform uses AI technologies to detect unusual
patterns during verification procedures. This enhances tax compliance and
contributes to protecting public funds while maintaining a smooth tax refund
experience for tourists.
Performance Indicators
The
Federal Tax Authority expects ongoing development and the latest improvements
to further increase tourist satisfaction with the refund service, in the coming
period.
Tourist
satisfaction reached 93% during the first nine months of 2026, compared to 92%
during the same period in 2025. The FTA indicated that, based on current
performance indicators, the number of transactions processed through the
digital Tourist Tax Refund Scheme, following the latest enhancements, is
expected to reach approximately four million transactions over the one-year
period from November 2026 to October 2027. A total value of approximately AED
692 million is projected.
The
FTA confirmed that the digital Tourist Tax Refund Scheme has achieved positive
results and strong efficiency indicators in recent years. Since its launch in
2018, until October 2026, the total value of VAT refunded to tourists through
the scheme reached approximately AED 4.2 billion, through 25 million
transactions processed based on tourist tax refund tags issued by retail stores
electronically connected to the scheme.
In
2025, the annual growth rate in the value of refunds reached 8%, while
transaction volumes increased by 5%, compared to 2024. The number of retail
stores (points of sale) registered with the FTA and electronically connected to
the scheme reached approximately 16,700. A total of 769 retail outlets joined
the scheme during the first nine months of 2026, following the addition of
1,326 outlets throughout 2025.
The
number of VAT refund self-service kiosks currently stands at 98, located across
numerous shopping centres and hotels, as well as at departure points for
tourists leaving the UAE. Transactions completed through these kiosks account
for 22.4% of all transactions processed through the Tourist Tax Refund Scheme.