FTA Introduces 'Maskan' Smart Application To Facilitate VAT Recovery For UAE Citizens

The Federal Tax Authority (FTA) has introduced a new smart application named ‘Maskan’. This initiative is part of the FTA's ongoing efforts to implement digital transformation and enhance tax services, aligning with government priorities and strategic directions.

‘Maskan’ offers UAE citizens a streamlined way to recover the Value Added Tax (VAT) incurred on constructing their new homes. The process is entirely paperless and digital, ensuring efficiency and convenience. The FTA highlighted that this launch is part of its broader strategy to develop faster, more efficient digital services while reducing paper usage and document requirements.

The FTA’s Director General, Khalid Ali Al Bustani, stated: "The launch of the ‘Maskan’ digital platform forms part of our efforts to implement the wise leadership’s vision to establish a modern housing system that ensures UAE citizens’ happiness and provides them with stability and a high quality of life. The platform offers transparent and streamlined procedures to expedite the process for refunding taxes that Emirati citizens incurred on the construction of their new homes."

Al Bustani also mentioned that this initiative aligns with the government's digital strategy aimed at driving smart transformation. He added, "The objective is to provide sustainable, proactive, and innovative services that reflect the leadership and excellence of the government system, meet users’ expectations, and fulfil the needs and requirements of the government of the future."

The full rollout of ‘Maskan’ will occur in two phases. The first phase, already active, allows UAE citizens to create files and upload tax invoices related to home construction supplies. The second phase will be launched before July 2024, introducing additional features such as barcode scanning from registered outlets to upload tax invoices directly into each applicant’s account.

This phased approach aims to simplify procedures further by eliminating conventional paper invoices prone to loss or damage. It ensures that eligible purchases can be claimed without risk.

Consultative Development Process

The development of ‘Maskan’ involved extensive consultations with citizens and suppliers. The FTA conducted brainstorming sessions where attendees shared their experiences with the previous refund mechanism. Their feedback was crucial in designing an application tailored to user needs.

Abdullah Al Bastaki, Executive Director of the Information Technology Sector at FTA, explained that this application would streamline VAT reclaim processes for new home constructions. He noted it aligns with the "Zero-Government Bureaucracy (ZGB)" programme initiated by the UAE government.

Zero-Government Bureaucracy Programme

The ZGB programme aims to enhance public service efficiency by eliminating unnecessary procedures. It targets removing 2,000 government procedures within a year and reducing service times by 50 percent through strong private sector partnerships.

Al Bastaki emphasised that FTA remains committed to providing facilities across all services by abolishing more procedures and reducing service durations in line with ZGB objectives.

The ‘Maskan’ application is part of federal government performance agreements for 2023-2024. These projects aim to propel UAE towards future competitiveness by achieving significant impacts across all sectors quickly.

This initiative supports UAE's vision of becoming a global hub for the new economy over the next decade. It contributes to creating an ecosystem where UAE can lead in innovation and advancement.

The FTA reiterated that ‘Maskan’ was designed according to latest standards ensuring performance efficiency and speed. This provides UAE citizens with a faster, seamless procedure for VAT recovery on new home constructions.

This launch follows directives from His Highness Sheikh Mohammed bin Rashid Al Maktoum aimed at developing efficient government services free from bureaucracy while offering integrated state-of-the-art services globally recognised as best-in-class.

With inputs from WAM