جمعية المجمع العربي للوساطة والتحكيم في الملكية الفكرية

'TAGI' Initiates Provision of Sales Tax Refund Services for Non-residents


AMMAN – April 5, 2016 - The agreement of the sales tax refund for tourists and non-residents, inked between Jordan's Ministry of Finance/Income and Sales Tax Department and Abu-Ghazaleh & Co. International (TAGI), was announced recently. The company signed the agreement after winning the tender agaisnt other international companies. Pursuant to the agreement, the company was granted the exclusive franchise to provide the service of sales tax refund for tourists and non-resident Jordanians. The announcement ceremony was held at the Tax Department headquarters and in the presence of HE Dr. Talal Abu-Ghazaleh, chairman of Talal Abu-Ghazaleh Organization, Tax Department Director General Bashar Saber Nasir, a number of representatives of chambers of industry and commerce and tourism and commercial sectors. During the ceremony, Dr. Abu-Ghazaleh affirmed “the company will launch a media campaign to make people aware of this service to be jointly carried out with Income and Sales Tax Department and the Jordan Tourism Board.” He pointed out to the importance of the business activity and its direct link to tourism, affirming that the tourism is internationally recognized as an integral part of the business activity. He also confirmed “tax refund for tourists and non-residents on their purchases that they take abroad when they leave the Kingdom will effectively impact the promotion of tourism and the commercial activity, which ultimately serves the national economy.” For his part, Director General Nasir said: “Signing the agreement is very important because of its positive effect on tourism and business promotion in Jordan. Sales tax refund procedures for tourists and non-residents contribute to the promotion of their purchases because of the refund system on the purchases that they take abroad when leaving Jordan through the airports and sea and land ports. “As Income and Sales Tax Department is keen to apply the law by imposing and collecting taxes from taxpayers, it is also keen and legally committed to refund sales taxes for non-residents and tourists when they take their purchases abroad through the airports and sea and land ports of the Kingdom by TAGI," he added Meanwhile, Head of Tourism Board Dr. Abdul Razzaq Arabiyat confirmed "the activation of the tax refund process for tourist will contribute to the revitalization of tourism of Jordan. The Board is ready to include the tax refund in its current marketing campaigns carried out in the Arab Gulf countries and East Asia regions and provide information on the tax refund in its publications, brochures and website." TAGI will develop the "Tax Free" online website to provide tourists and non-residents with publications on the sales tax refund applicable to them and shopping in Jordan. A network of authorized merchants who decide to benefit from tax refund services will be established. Also, a computerized system will be set in place by the Company to serve the merchants and customers. Pursuant to the law, sales tax is refunded to the Jordanians and non-Jordanians who resided out of the country for more than 183 days during the twelve previous months as of the date of their departure. They must claim the refunds within three months from the date of the purchase provided that they take the purchases out of the country. The Company is responsible to review the information and carry out the administrative actions related to the sales tax refund for the recipients at its own expense including the reporting, payment and settlement of refunds, settlement of the accounts of the company, issuance of the accredited merchants’ claims and archiving and saving documents.