Dubai Tax Free Guide: How to Get 5% VAT Refund Step by Step

From rules and limits to a step-by-step guide at the airport—everything you need to know to get your money back from shopping in the UAE.

Shopping in Dubai can be even more enjoyable if you get a portion of your spending back on your way home. Sounds tempting? That’s exactly what the Tax Free system is all about. Forget the stereotypes about complicated bureaucracy: in the UAE, the VAT refund process (which amounts to 5% of the item’s value) has been transformed into a fast, digital service. Essentially, it’s a government-guaranteed cashback program for tourists. Our goal is to guide you every step of the way—from the store shelf to the cash desk at the airport—and show you that getting your dirhams back is easier than you think.

What is the tax free system in Dubai and how does it work?

The most important thing to know about Tax Free in the UAE: there’s no confusion here. Unlike in Europe, where you might encounter several competing operators, in the Emirates a single company—Planet Tax Free—handles everything. And that immediately takes the headache out of the equation. You don’t have to sort through different rules or look for the right logos—the only benchmark you need is clear. If you see the familiar blue Planet brand in a store or at the airport, you’re on the right track to getting your money back.

One operator for the whole country, it’s convenient: In the UAE, you don’t have to choose between different Tax Free companies. All transactions are handled through Planet. Look for their logo in stores and the blue counters at the airport, this is your main point of reference.

Return conditions: Who can get a refund, for what, and how much?

To successfully claim a VAT refund, both you and your purchases must meet several simple criteria.

Who is eligible for a refund?

Tourists are eligible for a tax refund, that is, anyone who is not a resident of the UAE and plans to leave the country. Unfortunately, crew members of air and sea vessels are not eligible to participate in the program. Your tourist status is confirmed by your foreign passport, which you present at the store and at the airport.

Which purchases are covered by the program?

To process a VAT refund, your purchases must meet three main conditions:

1. The minimum purchase amount on a single receipt is 250 AED. 2. The goods must be purchased from a store that is part of the system (look for a sticker with the Planet Tax Free logo at the entrance or at the checkout). 3. You must take the purchased goods out of the UAE within 90 days of the date of purchase.

Important nuance: What won’t the tax be refunded for?: The Tax Free system does not apply to services (hotels, tours, restaurants) or to goods that you have already started using in the UAE. Cars, tobacco, and alcoholic products are also excluded from the program.

How much actual money will actually return to your wallet?

Now for the most interesting part-money. VAT in the UAE is 5%, but it’s important to understand that you won’t get back the full 5%. Here’s how the system works:

1. The operator Planet keeps 15% of the tax amount as a commission. 2. A fixed fee of 4.80 AED is charged for processing each receipt. Let’s calculate using a real example. You bought a bag for 1050 AED (including 5% VAT). Price without tax: 1050 / 1.05 = 1000 AED. VAT amount: 50 AED. Refundable amount (minus 15% commission): 50 AED * 0.85 = 42.50 AED. Total received (minus receipt fee): 42.50 AED - 4.80 AED = 37.70 AED.

What does this mean in practice? For a purchase of 1050 dirhams, you’ll get back 37.70, which is about 3.6% of its value. The conclusion is clear: the more expensive the purchase, the more profitable the refund, because the fixed fee of 4.80 AED “dilutes” over a larger amount.

It’s also important to know that the daily cash withdrawal limit is 7,000 AED. Any amount exceeding this will be transferred to your card.

Step-by-step guide: three simple steps to get your tax refund

The entire process, from making a purchase to receiving your money, is fully digitalized and consists of three straightforward steps.

Step 1: In the store, don’t forget the tax free tag

It all starts at the checkout. 1. Ask for a Tax Free form. After making a purchase worth at least 250 AED, tell the cashier that you’d like to claim a VAT refund. 2. Present your passport. You only need your foreign passport. The cashier will scan it to enter your details into the system. 3. Receive the tag. After payment, a special digital tag with a barcode will be attached to your receipt. Keep these receipts safe until you depart.

Step 2: At the airport – validation BEFORE checking in your luggage

This is a critical step where even a small mistake can cost you money. 1. Find a Planet kiosk. In the departure area, before the check-in counters, locate the blue Planet Tax Free self-service kiosks. 2. Complete the validation. At the kiosk, scan your passport and then the barcodes from all your receipts. The system will instantly verify the data and confirm your claim. 3. Be ready to show your “treasures.” After electronic validation, you may be directed to a customs officer’s desk. And the officer has every right to ask: “Let me see those watches!” That’s why the entire procedure must be completed before check-in and baggage drop-off. Your purchases must be with you, in your carry-on bag or on top of your suitcase, not buried deep inside your luggage that’s already on the baggage carousel. No goods present) your payment is due on no refund.

Step 3: Receiving your money - cash or card?

After successfully completing customs validation, the best part is yet to come: collecting your money. 1. Find the Planet counter. It’s located in the “clear zone,” after you’ve passed through passport control. 2. Choose your refund method. You can receive your money in cash in dirhams or arrange a transfer to your bank card (Visa, Mastercard, and others).

Cash or card: what should you choose?: Cash: You’ll receive the money immediately at the airport, but there’s a limit of 7,000 AED. Ideal for smaller amounts. To card: There’s no limit on the amount, but the money will be credited within 5–10 business days. The optimal choice for refunds from large purchases.

Secrets of smart shopping: How to avoid mistakes and maximize your refund

Now that you know the process, here are a few tips to help you save time and hassle while maximizing your benefits.

Common tourist mistakes (and how to avoid them)

Airport rule of thumb: validation first, check-in later: The most common and frustrating mistake is checking your items into baggage before going through validation. Customs officials have the right to ask you to present your purchases. If they’ve already been sent along the baggage carousel, you’ll be denied a tax refund. Remember: first the Planet kiosk, then the check-in counter.

In addition, avoid these two more common mistakes:

Issuing numerous small receipts. Remember the AED 4.80 fee per receipt? By processing Tax Free for ten souvenir mugs from different shops, you’ll be giving the operator almost 50 dirhams for nothing. Feels a bit unfair, doesn’t it?
Arriving at the airport right on time. Yes, the kiosks work quickly. But you’re not the only smart shopper around. During peak hours, a queue of equally budget-conscious shopaholics may form in front of them. Don’t risk missing your flight just to save a few dirhams.

Expert tips

1. Think strategically: one large receipt is better than five small ones. Planning a big shopping spree at Dubai Mall? Try to make as many purchases as possible in a single department store (such as Galeries Lafayette or Bloomingdale's) so you can combine them into a single Tax Free receipt. This is the easiest way to avoid the processing fee. 2. Let your smartphone do the work for you. The official "Planet Tax Free" app is your best friend. You can scan your receipts in advance so that at the airport you just need to hold your phone up to the kiosk instead of sorting through piles of paper. Plus, you’ll always know exactly how much money you’re due back. 3. Allow extra time. Arrive at the airport 30–40 minutes earlier than planned. This buffer will give you enough time to complete all Tax Free procedures calmly and without rushing.

Tax free in Dubai: A quick summary and final checklist

You now have everything you need to turn your shopping in Dubai into an even more profitable experience. The Tax Free system in the UAE is truly designed with shoppers in mind: it’s digital, fast, and easy to understand. All you need to do is pay a little attention while shopping and follow one golden rule at the airport: first, head to the blue Planet kiosk, then take care of everything else.

So go ahead and enjoy your shopping, savor the experience, and don’t forget to pick up a nice cash bonus on your way back. It’ll be the perfect finishing touch to your trip to Dubai.