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I'm working in Dubai constructing a building for a company there, but I use my US bank account to buy materials and tools. Do I have to pay VAT at my bank in the USA or do they just add VAT automatically on the purchase of materials in DUBAI? And I only pay the value of the total product including VAT? Would my bank require me to pay any kind of taxes for using my card in DUBAI for these purchases?

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    You are constructing a building in a foreign country. Do you not have a local accountant helping you with that project? If you do, ask them.
    – DJClayworth
    Commented Nov 10, 2023 at 23:35

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Any sales taxes, including VAT, should be included in the charge at the time of purchase, and shown on the receipt the vendor gave you.

The only likely additional cost will be a currency conversion fee.

Do save your receipts. I don't know about Dubai, but some countries will let visitors apply for a refund of VAT, and you will need copies of the receipts to file the request.

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  • I don't think you can ask for VAT refund in this case since the materials will remain in Dubai. There may be some VAT exemptions for businesses, but that would depend on whether they're properly registered and remitting VAT from their customers, which I find unlikely given the scenario
    – littleadv
    Commented Nov 10, 2023 at 20:43
  • Ah. I was skipping the specifics of this case; my mistake. Still a good habit to get into when travelling, whether on business or not.
    – keshlam
    Commented Nov 10, 2023 at 20:58
  • In some countries a large enough company that is itself registered for VAT can claim back the VAT on materials it uses in business. I have no idea if that is true in Dubai.
    – DJClayworth
    Commented Nov 10, 2023 at 23:34
  • Hi, I am not want the refund. I am asking because a friend of mine is telling me that his bank here in USA is charging him VAT because he bought with his Debit Card in Dubai some materials and the bank block his account because of that and I want to find out if it is true
    – Marlin Zaid
    Commented Nov 11, 2023 at 0:13
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    No way for us to know from here. But if this "friend" is someone you only know through the internet assume it's a scam, and ditto if they are asking you to use your own money or bank accounts to help them.
    – keshlam
    Commented Nov 11, 2023 at 0:41

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