Conditions for Registering under tourist VAT Refund Scheme

Registering retail stores in the tax refund system for tourists involves meeting several conditions and is facilitated through an electronic system. This process must comply with the terms and conditions outlined in the Federal Tax Authority’s decision for the year 2018, which we will detail in this article

Conditions for Registering Retail Stores with VAT for Tourists

• The business must be registered with the Federal Tax Authority and have a tax registration number.

• The sold goods must not be exempt from recovering the VAT, as determined by the Federal Tax Authority.

• The merchant must submit a request to participate in the digital system.

• Payment of the financial credit required from the system operator.

• Commitment to pay all due taxes and submit tax returns periodically and regularly, as well as not having any due taxes or unpaid fines.

Who are the People who can Register in VAT Refund System for Tourists?

 All persons registered in VAT system and have a tax registration number who supply goods in the country are entitled to register in the VAT refund system for tourists, and the response will be from the Federal Tax Authority within 11 working days from the date of receipt of the request.

Procedures and Steps for Registering Retail Stores in the Tax Refund System for Tourists

 The registration process can be done through Planet Tax Refund’s electronic registration service:

• You must fill out the required data in the registration form on the Planet website.

• Read and sign the contract.

• Attach the required documents.

• Complete the registration process.

Steps:

• After entering the previously mentioned website (Planet), you are required to go to the merchants page, click on the registration button, and fill out the contract with the data of the person who is registering (contact data, contract data), as well as the data of the person authorized to sign, and the details of the legal entity that enters the tax system.

• Fill in the billing and store information (store name – phone number – address – contact information with the store manager)

 You will receive a confirmation message, and after receiving the confirmation email, you must:

• Review the contract carefully and then sign it.

• Upload documents (tax registration number certificate – commercial license certificate – general power of attorney if the name of the authorized signatory is not on the commercial license.

• Signature form of the person authorized to sign.

• A signed credit check consent form that grants Planet a credit report request.

It is worth noting that the Federal Tax Authority has clarified that registering retail stores in the tax refund system for tourists requires a good credit report, in accordance with the controls set by the service provider Planet (The required guarantees must be a check or a bank guarantee).

 If the credit report is not good, Planet will ask the store wishing to register with the tax refund system for tourists to provide proof of clearance or payment of returned checks to proceed with the registration process.

 That is, before agreeing to register, the retail store that wants to join the system must sign a form approving the credit check, which authorizes Planet to request a credit report.

The Merchant may be Subject to Cancellation from Registration in the VAT for Tourists if:

• If the merchant does not fulfill his obligations stipulated in tax legislation.

• If the merchant does not fulfill his obligations stipulated in the contract concluded between the merchant and the system operator

 It should be taken into consideration that:

• After registration, if there is more than one store that the merchant wishes to register to refund the added value to tourists, and it has the same tax registration number, he can send a message to merchants@planetpayment.com with a copy of the commercial license for the store.

• If the business has another tax registration number, it must be registered again with each tax registration number.

Editing or Cancellation of the Registration Request

• The amendment to the request to register retail stores in the tax refund system for tourists can be clicked on the link received from the email after the initial registration request.

• To cancel the registration request in the value-added refund system for tourists, you must send a message to the email address at Merchants@planetpayment.com.

Basic Steps to be Taken by the Retailer

 The retailer must take the following steps if the customer asks him to make a purchase under the VAT refund system for tourists:

• Verifying the procedures specified by the Federal Tax Authority and the company operating the system to determine whether the buyer is a tourist coming from outside the country when purchasing goods and is present at the retail store with purchase invoices, and also whether the supply of goods was within a period not exceeding 90 days from the date of the issuance request.  Recovery documents.

• If the buyer requests him to purchase under the VAT refund system for tourists, the retailer must register the customer’s data and purchase details, in accordance with what has been determined by the Federal Tax Authority and the electronic system operator, and must issue the necessary documents and submit them to the buyer to be able to claim the VAT refund.

• The retailer must comply with any procedure related to the packaging and delivery of goods as determined by the Authority regarding certain goods or categories of goods, in addition to fulfilling any conditions that may be specified in the agreement that the retailer agrees to provide the tax-free purchase service.

• The retailer may not issue any tax refund requests to a buyer under the age of 18.

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