Business & Money | Friday 13 July, 2018 6:30 am |

The United Arab Emirates announced on Wednesday that Value Added Tax refunds will be available for  tourists visiting from overseas, state news agency WAM reported.

The UAE introduced VAT in the country on January 1, 2018, at a rate of five percent.

The UAE aims to grow the tourism sector and maintain its position as a global destination for tourists with the new VAT refund system, the report added.

“The system will be implemented beginning the fourth quarter of 2018 in cooperation with an international specialized company in tax recovery services," a press statement read.

But the refund scheme will not apply to all purchases, instead only items bought from a select group of retailers will fall under the program. 

The total contribution of the tourism sector to the country's GDP reached 11.3 percent in 2017, equivalent to 154.1 billion AED ($41.9 billion)