Considering the clarification issued by FTA, businesses should ensure their tax invoices adhere to the requirements of the UAE VAT legislature. Non-compliance with the same may render the invoice invalid and may attract administrative penalties on the supplier. Furthermore, it is recommended that adequate steps are taken to upgrade the IT systems in order to ensure that there are minimal manual interventions and the invoices are in lines with the FTA requirements.
Additionally, implementation of VAT tourist refund scheme is a positive step towards ensuring that UAE continues to be an ideal tourist destination for shoppers, thereby promoting the domestic trade and tourism industry. Businesses operating under the B2C model should take the initiative and get registered with the FTA for the refund scheme in order to remain competitive, boost sales and promote the trade in UAE.