The Federal Tax Authority (FTA) announced a significant increase in the use of its digital VAT refund systems in 2024, with strong growth in refunds for UAE nationals building new residences and for tourists claiming tax rebates.
The FTA reported that the total VAT refunds for UAE nationals constructing new residences reached 34,900 approved applications by the end of 2024. The total value of refunds was Dh2.9 billion since the service began over six years ago. This marks a 27.52% increase in approved applications and a 32% rise in monetary value compared to 2023, which saw 27,000 applications and Dh2.2 billion in refunds.
In 2024, 7,520 applications were approved, amounting to Dh704.38 million. Annual data shows consistent growth:
- 2018: 270 applications worth Dh9.11 million.
- 2019: 1,900 applications worth Dh121.46 million.
- 2020: 3,750 applications worth Dh301.35 million.
- 2021: 5,990 applications worth Dh467.52 million.
- 2022: 7,170 applications worth Dh583.38 million.
- 2023: 8,250 applications worth Dh720.12 million.
VAT refunds for tourists
The VAT refund system for tourists also expanded, with the number of retail outlets linked to the system growing to 17,847 by the end of 2024, a 9% increase from 16,357 in 2023. Over the last two years, 3,008 new outlets joined the system, including 1,490 in 2024 and 1,518 in 2023.
The FTA also increased the availability of self-service kiosks for tourists to process refunds. By the end of 2024, 97 kiosks were operational, up from 82 in 2023, marking an 18.3% increase. These kiosks, located in airports, shopping malls, and hotels, complete refund transactions in under two minutes. The number of kiosks added in 2024—15—more than doubled the six installed in 2023.
Future plans
The FTA aims to further enhance its digital tax systems in 2025 as part of the UAE’s broader strategy to streamline government services and reduce bureaucracy. The authority’s focus will remain on expanding the reach and efficiency of the VAT refund systems to support economic growth and increase customer satisfaction.
The continuous development of these systems underscores the UAE’s commitment to advancing its digital economy and attracting global investment and tourism.
