The UAE is first in the world to extend VAT refunds to marketplace purchases

Tax refunds on purchases made in an online store had not worked anywhere until now — the Emirates did it first. For the moment the scheme covers goods on one large local platform marked as participating; the authorities promise to connect the rest over time.

How it works

• The item must be marked as participating in the programme.
• The buyer receives an electronic receipt.
• At the airport before departure the order is confirmed at a kiosk or an operator's desk.
• The tax refund is then processed.

Why this relates to property

Indirectly but concretely. Tourist flow is one of two sources of short-let demand in Dubai, the other being business travel. Everything that makes a trip easier and cheaper works for that flow: visa-free entry, the speed of the airport, connectivity, tax refunds.

Individually each measure changes little. Together they form what the emirate is building the system for: a reputation as a destination that is simple and pleasant to visit. That is ultimately what determines occupancy in apartments let by the night.

A detail for owners

Worth remembering that short-letting in Dubai is itself subject to taxes and charges: VAT on accommodation services, a tourism fee and municipal payments. A short-let yield calculated without those items is inevitably overstated.