The UAE Cabinet has approved the decision to implement the value added tax (VAT) refund system for tourists, it was announced.

The system will be implemented from the fourth quarter of 2018 in cooperation with an international specialised company in tax recovery services, news agency Wam reported citing a press statement from the Cabinet.

Non-resident tourists may refund VAT on purchases made at participating retailers, provided that such goods are not exempt from the tax system, through designated refund outlets.

The tourism sector contributes directly to the local economy. The number of passengers through the UAE’s airports reached 123 million passengers in 207, and the total contribution of the tourism sector to the country's GDP reached 11.3 per cent in 2017, equivalent to Dh154.1 billion ($41.9 billion).