The UAE Federal Tax Authority (FTA) approved over Dh3.2 billion in VAT refunds for Emirati homeowners. It scaled up its digital refund system for tourists during the first half of 2025, according to new figures released this week.
More than 38,000 applications were approved under the VAT refund programme for new residences by UAE nationals since its launch, up from 31,000 a year earlier. The number of approved cases grew 22.7% year-on-year, while the value of refunds rose 25.7%.
Between June 2024 and June 2025 alone, 7,000 new applications were processed under this category, with total refunds amounting to Dh653.1 million. In the first half of 2025, 3,097 applications resulted in Dh284.77 million in disbursed refunds.
The FTA attributed the growth to the expansion of its fully digital platforms, including the “Maskan” app, which automates the refund process for UAE nationals using paperless procedures. The system aligns with the country’s broader digital transformation strategy, which aims to reduce bureaucracy and enhance service delivery.
The tax authority also extended its digital refund platform for tourists, connecting an additional 697 retail outlets to the network between January and June 2025. That marks a 29% year-on-year increase, bringing the total number of registered outlets to 18,410 by mid-year, compared to 17,080 in June 2024.
Self-service refund kiosks for tourists, available at airports, hotels, and shopping malls, rose to 96 machines nationwide. The kiosks enable outbound travellers to complete VAT refund transactions in under two minutes, part of the FTA’s move to eliminate paperwork and improve turnaround time.
The FTA launched the world’s first VAT refund platform for e-commerce tourist purchases in December 2024, enabling paperless claims by linking passports to point-of-sale digital receipts and shopper portals. The tool allows tourists to view invoices and automatically receive refund credits.
The authority said it would continue to roll out new digital initiatives to enhance efficiency, minimise manual procedures, and boost user satisfaction across the tax ecosystem.
