VAT Impact on Travel and Tourism sector with Upcoming Expo 2020 in UAE

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VAT Impact on Travel and Tourism sector with Upcoming Expo 2020 in UAE


World Expo 2020  is hosted by Dubai, United Arab Emirates, opening on October 20, 2020. The Bureau International des Expositions, a part of 167 member states. The Expos is that the first Major League Baseball (MLB) franchise located outside the United States.  Now let’s see how this will impact on the VAT


The ripples of the newly implemented VAT regime are being felt across all verticals in UAE. However, UAE’s travel and tourism sector still have high hopes for Expo 2020 and it is leaving no stone unturned to make it a grand success.

In the meantime, failure to implement a VAT repayment system for tourists has raised a few eyebrows over the preparedness of the authorities.

The dream to transform UAE as one the major tourist hubs on the planet has been nothing but a fairy tale. With EXPO 2020, UAE hopes to cement its place as the first choice for business as well as leisure travelers and carry the gained momentum into future endeavors.

Experts are also playing down the impact that the new value-added tax (VAT) at a standard rate of five percent could have on the industry.


Hmedan said, “It is still rather early to form an opinion about the impact of the newly-imposed VAT on any sector. Yet it is heartening to note that international and domestic flights have been exempt from the new VAT charges in the UAE.”


Federal Tax Authority, in their executive regulations released in Nov 2017, had assured Foreign tourists of VAT reclaims on the purchases made by them during their visit. However, details of how this refund scheme would be implemented are yet unknown.

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