UAE Nationals Benefit From AED2.02 Billion In VAT Refunds For New Residences

The Federal Tax Authority (FTA) has observed a notable surge in the uptake of the value-added tax (VAT) refund service by UAE nationals for the construction of new residences. Since its inception in 2018, the service has seen over 27,330 applications approved, with refunds exceeding AED2.02 billion. This initiative underscores the FTA's commitment to supporting UAE nationals in their home-building endeavors.

Year-on-year data reveals a consistent increase in both the number of applications received and the total value refunded. Starting with 270 applications in 2018, the figures rose sharply to 1,900 in 2019, and further to 3,750 in 2020, showcasing significant growth rates of up to 97.16 percent in approved applications and 148.1 percent in tax refund value. The upward trend continued through 2021 and 2022, culminating in approximately 8,250 approved applications worth AED720.12 million in refunds for the year 2023.

Khalid Ali Al Bustani, Director-General of the FTA, highlighted the substantial increase in beneficiaries over the past five years as a testament to the effectiveness of the FTA's enhancements and modernisation efforts. These initiatives align with the UAE's strategic vision to ensure the happiness, stability, and well-being of its citizens, who are considered pivotal to national development plans.

The FTA has been proactive in evolving the VAT refund service for new residences with additional features to streamline and accelerate processes. A transparent and user-friendly electronic platform now facilitates easier access to this service. Efforts have been made to raise awareness among UAE nationals about this service through various channels, ensuring they are well-informed about its benefits and features.

Looking ahead, the FTA plans to further refine its services and enhance awareness about the electronic VAT refund service for new residences among UAE nationals. Remote video consultations will be offered to address inquiries and provide direct communication with FTA staff responsible for processing tax refunds. Instructional materials, including videos and guides detailing the application process for refunds, will be made available on the FTA website and social media platforms.

This initiative not only simplifies the tax refund process for UAE nationals building new homes but also reflects the FTA's dedication to leveraging technology for improved service delivery. By facilitating easier access to VAT refunds, the FTA aims to contribute positively to the housing sector and overall citizen satisfaction.

With inputs from WAM