AED 646 Million VAT Refunds Issued To UAE Nationals For Building New Residences In 2025

The Federal Tax Authority reports rising use of the VAT refund scheme for Emirati self-built homes, with more than 7,200 approved claims in the past year worth AED646 million. Officials say the programme also aims to support family housing stability, using streamlined digital tools across the UAE.

Director-General Khalid Ali Al Bustani notes that these refunds reflect greater understanding of tax rules and smoother procedures. System changes during 2025 reduce data entry, particularly bank and personal information, and support quicker processing. New links with municipalities also help submit eligible VAT refund applications on behalf of citizens.

Khalid Ali Al Bustani stated, "We are keen to ensure that continued attention to – and ongoing enhancement of – Emirati family-related services remain among the Authority’s top priorities, in particular the Tax Refund for UAE Nationals Building New Residences service, which is continuously developed through the latest innovative and user-friendly digital systems."

Al Bustani added that this focus fits national goals on social support and family housing. "This aligns with the vision of the UAE’s wise leadership to strengthen social stability and support the country’s comprehensive development journey, particularly in relation to family housing stability, in line with the designation of 2026 as the Year of Family."

Al Bustani explained that more UAE Nationals are benefiting from the Tax Refund for UAE Nationals Building New Residences service as awareness grows. "These numbers of UAE Nationals benefiting from the Tax Refund for UAE Nationals Building New Residences service, reflects greater tax awareness and further confirms the success of the Authority’s ongoing development and enhancement efforts. These include introducing additional initiatives to simplify and accelerate the refund procedures for eligible UAE Nationals who meet the legal requirements for VAT refund, as part of the Authority’s strategy to contribute to strengthening a modern housing ecosystem for citizens, and to provide them with the highest standards of quality of life and wellbeing."

The Authority details several operational upgrades that support this VAT refund process. Within the smart Maskan application, the number of required bank account fields has been reduced, along with personal data entries. Integration with municipal systems enables proactive submission of claims, backing the Zero Government Bureaucracy programme and cutting unnecessary steps for UAE Nationals building new residences.

Key figures from the FTA’s report on VAT refund approvals for Emirati homes are shown below.

Al Bustani reaffirmed the FTA’s commitment to providing clear, transparent standards, procedures and mechanisms to facilitate citizens’ refund of VAT paid on the construction of homes, while continuing its development plans and awareness campaigns to promote the accessible digital services available for tax refunds. This includes awareness sessions conducted via remote video communication, offering consultations and clarifications, responding to enquiries, and providing citizens with the opportunity to directly engage with specialised FTA employees to support them in completing requirements and finalising their applications as quickly as possible.

With inputs from WAM