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Thousands of UAE citizens get Dh353.5 million VAT refund for building new homes
End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of FTA
- PUBLISHED: Tue 21 Jul 2026, 4:54 PM
Approximately 4,000 Emiratis benefitted from the value-added tax (VAT) Refund Scheme in the first half of 2026 for building new residences, as confirmed by the Federal Tax Authority (FTA). The refund applications submitted for VAT incurred a total refund value of Dh353.5 million
This compares to 3,100 approved applications worth Dh284.8 million during the first half of 2025, representing a 27.5 per cent increase in the number of approved applications and a 24.1 per cent increase in the value of VAT refunded.
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VAT is a transaction-based indirect tax, levied at each step of the supply chain. End consumers generally bear the VAT cost while registered businesses collect and account for the tax, in a way acting as a tax collector on behalf of FTA.
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Expanded scope of VAT refunds
In addition to this initiative, the tax authority also launched a proactive service for Emiratis who have built or completed the construction of their private residences. The service enables a VAT refund application to be generated automatically through its ‘Maskan’ smart application once the relevant municipality issues the building completion certificate or, where applicable, the building permit.
In June of this year, FTA expanded its scope of expenses eligible for VAT refunds for Emiratis constructing new residences, which would allow them to save approximately Dh25,000 per claim.
After the refund application is created, the citizen receives an SMS and email confirmation that a VAT refund application for the residence has been created. The user will then be directed to the Maskan application to complete the required procedures.
Invoice details are automatically populated into the citizen’s account within the platform once the invoices are issued by registered suppliers. In addition, the number of required banking-information fields has been reduced through integration with the Central Bank of the UAE.
Invoice information is also automatically compiled into a single Excel file containing all the details that previously had to be entered manually. Artificial intelligence technology verifies the accuracy of refund amounts and suppliers’ Tax Registration Numbers (TRNs), while all invoices are consolidated into a single file.
“These positive results reflect the continuous enhancement of the VAT Refund Scheme for UAE Nationals Building New Residences, including the introduction of additional measures to simplify and accelerate procedures through the Authority’s digital refund platform," said Abdulaziz Mohammed Al Mulla, Director General of the FTA.
He added that this initiative contributes to the "development of a modern housing ecosystem that enhances citizens’ wellbeing and supports a stable and dignified family life".
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.