FTA Approves AED2.54 Billion In VAT Refunds To Emiratis For Residential Constructions

The Federal Tax Authority (FTA) approved 30,920 applications by Emirati citizens for VAT refunds totaling AED2.54 billion for taxes incurred on building new homes since the service was launched and until the end of the first half of 2024.

At the end of the first half of 2023, 23,340 applications were approved, totaling AED1.54 billion. This represents a 32.45% increase in the number of approved applications and a 65.07% increase in the total refunded amount over the past year.

The Authority said Monday that between June 2023 and June 2024, 7,580 new applications were approved, letting citizens reclaim over AED1 billion in taxes they paid for new home construction. In the first six months of this year, 3,590 new applications were approved, resulting in refunds of AED336.09 million.

Khalid Ali Al Bustani, Director-General of the FTA, said the increase in UAE citizens using the Tax Refund Scheme for building new homes is due to more tax awareness and ongoing improvements to the service since it began six years ago.

"These enhancements include introducing more facilities to streamline and expedite the refund process for UAE citizens who meet the legal requirements for tax refunds," Al Bustani said, according to WAM.

"This initiative is in line with the Federal Tax Authority's strategy to prioritize citizens' happiness, as per our wise leadership's vision to establish and enhance a modern housing system for Emirati citizens and provide them with the highest living standards," he added.

He noted that the FTA introduced the Maskan smart app this year, making it easier for UAE citizens to request VAT refunds for new home construction using fully digital and paperless methods.

"This allows Emirati citizens to benefit from digitization efforts and expedite the tax refund process," Al Bustani explained. "The initiative forms part of the Authority's contributions under the Transformational Projects Series, which aims to advance digital services, limit paper consumption, and minimize the number of required documents, among other facilities."

Al Bustani highlighted the Authority's plans to keep improving the service and educate citizens about the e-services available for VAT refunds on new homes, adding that these plans include virtual meetings for consultations and answers to questions, allowing direct contact with FTA staff who handle VAT refunds.

Furthermore, the Authority offers videos and guides on its website and social media, showing how to apply for VAT refunds — from submitting the application and documents online to receiving the refund in the bank account.