FTA Approves 7,580 VAT Refunds for Emiratis Building New Homes in Last 12 Months

The UAE Federal Tax Authority (FTA) has approved a total of 30,920 applications for Value Added Tax (VAT) refunds, amounting to Dh2.54 billion, submitted by Emirati citizens for taxes incurred on building new residences since the service was launched and up to the end of the first half of 2024.

By comparison, as of the end of the first half of 2023, the total number of approved applications stood at 23,340, with a total value of Dh1.54 billion.

This represents a 32.45 per cent increase in the number of approved applications and a 65.07 per cent increase in the value of refunded amounts over the 12-month period.

The Authority explained in a press statement that between the end of June 2023 and the end of June 2024, 7,580 new applications were approved, enabling citizens to reclaim over Dh1 billion in taxes paid on building new homes.

In the first six months of this year, 3,590 new applications were approved, refunding Dh336.09 million in taxes.

Khalid Ali Al Bustani, Director General of the FTA, attributed the significant increase in the number of UAE citizens benefiting from the Tax Refund Scheme for UAE Nationals Building New Residences to heightened tax awareness and continuous improvements made by the Authority to the service since its launch six years ago.

“These enhancements include the introduction of more facilities to streamline and expedite the refund process for UAE citizens who meet the legal requirements for tax refunds,” Al Bustani said.

“This initiative aligns with the Federal Tax Authority’s strategy to prioritise citizens’ happiness, in accordance with our wise leadership’s vision to establish and enhance a modern housing system for Emirati citizens, providing them with the highest living standards.”

He noted that the FTA launched its Maskan smart application this year, providing further facilities for UAE citizens to request refunds on VAT incurred on the construction of their new homes with 100 Per cent digital and paperless procedures.

“This allows Emirati citizens to benefit from digitisation efforts and expedite the tax refund process,” he explained.

“The initiative forms part of the Authority’s contributions under the Transformational Projects Series, which aims to advance digital services, reduce paper consumption, and minimise the number of required documents, among other facilities,” he added.

Al Bustani emphasised the Authority’s ongoing plans to develop the service and continue its campaigns to educate citizens about the streamlined e-services available for applying for VAT refunds on building new residences.

“These include virtual meetings to offer consultations and clarifications, respond to enquiries, and facilitate direct communication with FTA staff handling VAT refunds on new homes, enabling taxpayers to complete their transactions as quickly as possible,” he noted.

“Moreover, the Authority provides videos and guides on its website and social media platforms, which outline the steps required for applying for VAT refunds, from submitting the application with supporting documents online, to receiving the refunded amount in the applicant’s bank account.”

Statistics from the Federal Tax Authority reveal a notable increase in the number and total value of approved applications since the service was first offered to UAE citizens.

The number of approved applications rose from 270 requests, worth Dh9.11 million in 2018, to 1,900 applications, worth Dh121.46 million in 2019.

The number grew further to 3,750 applications, valued at Dh301.35 million in 2020, marking a significant 97.16 per cent increase in the number of approved applications and a 148.1 per cent rise in refunded VAT amounts.

This upward trend continued, with 5,990 applications worth Dh467.52 million approved in 2021, marking an annual growth of 59.62 per cent in the number of approved applications and 55.14 per cent in refunded VAT amounts.

In 2022, the number of approved applications rose to 7,170 requests, worth Dh583.38 million, reflecting a growth of 19.61 per cent in the number of approved applications and 24.78 per cent in refunded VAT amounts.

Figures for 2023 indicated continued growth, with a total of 8,250 applications worth Dh720.12 million approved, marking a 15.06 per cent annual growth in approved requests and 23.44 per cent in refunded VAT amounts.

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