Emirati citizens have obtained Dh2.54 billion in refunds for value-added taxes (VAT) incurred on building new residences since the service was launched and until the end of the first half of 2024.
The UAE Federal Tax Authority (FTA) has said it has approved a total of 30,920 applications for VAT refunds on newly built residences in the first six months of the year.
This reflects a significant annual increase. By the end of the H1 2023, the FTA had approved a total of 23,340 applications and Dh1.54 billion in refunds. The rise represents a 32.5% increase in approved applications and a 65.1% increase in refunded amounts over the past year.
The FTA explained that it approved 7,580 new applications in the 12 months between June 2023 and June 2024, allowing citizens to reclaim over Dh1 billion in taxes they paid on building new homes. In H1 2024 alone, 3,590 new applications were approved, amounting to Dh336.09 million in VAT refunds.
Khalid Ali Al Bustani, Director-General of the FTA, attributed this growth to higher tax awareness and ongoing improvements in the refund process since its launch six years ago.
Khalid Ali Al Bustani, Director-General of the FTA, attributed the significant increase in the number of UAE citizens benefiting from the Tax Refund Scheme for UAE Nationals Building New Residences to increased tax awareness and continuous improvements made by the Authority to the service since its launch six years ago.
“These enhancements include introducing more facilities to streamline and expedite the refund process for UAE citizens who meet the legal requirements for tax refunds,” Al Bustani said. “This initiative is in line with the Federal Tax Authority’s strategy to prioritise citizens’ happiness, as per our wise leadership’s vision to establish and enhance a modern housing system for Emirati citizens and provide them with the highest living standards.”
One of the largest developments has been the introduction of the Maskan application, which provides streamlined e-services through virtual consultations, direct communication with FTA staff, and instructional materials.
Since the service was launched, the number of approved applications has grown significantly, from 270 requests worth Dh9.11 million in 2018 to 8,250 applications worth Dh720.12 million in 2023.
