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This calculator was last updated on July 10th, 2026
First, let’s understand certain variables in this calculation.
Purchase Price (AED) (including VAT): This is the final purchase amount you paid to the merchant. Yes, including the VAT amount.
Eligible VAT Refund: The VAT refund you’re eligible for as a tourist in Dubai for eligible purchases. What are eligible purchases? Physical goods (like clothing, electronics, jewelry, watches, etc.) bought at registered retailers under the Planet Tax Free (official VAT refund platform of the UAE) system. Services (hotels, dining), consumables (food, beverages, groceries), property, vehicles, etc. are not eligible purchases.
Note: a minimum purchase of AED 250 is required to be eligible for a VAT refund.
Now let’s understand the steps needed to calculate the VAT refund amount.
Step 1: Extract the VAT amount from the purchase price (including VAT).
VAT amount paid = Purchase price (including VAT) x (VAT rate / (100 + VAT rate))
VAT amount paid = 100000 x (5 / 105) = AED 4761.90
Note that in the UAE, the standard VAT rate is 5% for most products.
Step 2: Calculate the VAT refund amount (87% of the VAT amount paid is eligible for refund, and then a transaction fee of AED 4.80 is deducted)
VAT refund amount = (VAT amount paid x 87%) - AED 4.80
VAT refund amount = (4761.90 x 87%) - 4.80 = AED 4138.06