Article (3)
System Mechanism
1. The person shall meet all the following conditions to be qualified to refund VAT using the
system:
a. To meet the conditions that are stated in Clause No. 2 of Article No. 68 of the referred
Cabinet Resolution No. (52) of 2017.
b. To purchase the items from a retail dealer who participated in the system.
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Cabinet Resolution of 2018 Implementing the Refund System of the Value Added Tax to Tourists 3
c. Items shall be purchased from the retail dealer in accordance with the requirements that
will be specified in a presidential decision.
d. Items shall be exported in accordance with the requirements that will be specified in a
presidential decision.
e. Such Items shall not be excluded by FTA from the system.
2. Each retail dealer who meets the participation requirements specified by the FTA shall have the
right to participate in the system.
3. If the tourist who is coming from abroad expresses his wish to the retailer, who participates in
the system, to purchase without VAT, the retailer shall give the tourist the necessary documents
to claim VAT refund using the system as determined by FTA. These documents include tax
invoice that meets all the requirements stipulated in Article (59) of the referred Cabinet
Resolution No. (52) of 2017.
4. The tourist coming from abroad shall apply for a direct VAT refund from the operator. The
operator in turn is required to refund the money upon receipt of the reasonable and sufficient
evidence as specified by FTA, on which the tax will be refunded to the tourist coming from
abroad.
5. The Operator may charge fees to the tourist coming from abroad against refund management
using the System. He may also deduct these fees from the amount to be refunded to the tourist
coming from abroad in accordance with the President Decision; providing that these charged
fees shall not exceed what is approved by Prime Minister.
6. The operator shall cooperate with the customs departments of the State in cases in which the
tourist coming from abroad have to show the goods for which he wishes to recover VAT, which
may require verification and inspection in accordance with the conditions determined by FTA.
7. Customs departments shall cooperate with FTA and the Operator concerning verification and
inspection in accordance with the conditions determined by FTA.
8. If the operator refunds the amount of VAT related to a purchase without VAT to a tourist
coming from abroad in accordance with this Article properly, the operator may demand the
retailer, who sold the relevant items to the tourist coming from abroad, to directly pay the
amount of the refunded tax.
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9. If the retail dealer pays the VAT amount to the Operator properly in accordance with this
Article, the retail dealer shall be able deem the VAT amount as a deduction from the Output
Tax that is to arise in the Tax Period in which the refund amount has been paid to the tourist
coming from abroad.
10. The FTA may:
a. Specify the requirements including: procedural requirements; evidentiary, verification,
documentation and record keeping requirements which the tourist who is coming from
abroad, retailer, operator and any other person required to meet in order to apply the
system.
b. Enter into agreements with any person and specify the necessary conditions and
procedures related to system operation.
