Record approvals for home-construction VAT refunds
The FTA explained that in the year between the end of June 2023 and the end of June 2024, 7,580 new applications were approved
The Federal Tax Authority (FTA) has approved a total of 30,920 applications for Value Added Tax (VAT) refunds worth a total of US $691m, submitted by Emirati citizens for taxes incurred on building new residences until the end of June 2024.
In comparison, by the end of H1 last year, the total number of approved applications amounted to 23,340, with a total value of US $419mn. This marks a 32.45% increase in the number of approved applications and a 65.07% increase in the value of refunded amounts over a period of 12 months.
The FTA explained that in the year between the end of June 2023 and the end of June 2024, 7,580 new applications were approved, allowing citizens to reclaim over $272,200 in taxes they paid on building new homes. In the first six months of this year, 3,590 new applications were approved, refunding $91.48mn in taxes.
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 to an 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,” he said.
Additionally, the FTA launched its Maskan smart application this year, providing further facilities for UAE citizens to request refunds on VAT incurred on the construction of their new homes, using 100% digital and paperless procedures.
