UAE Authorities Authorize AED 3.2 Billion in VAT Rebates for Emirati Citizens Constructing Homes by June 2025
UAE's Federal Tax Authority Streamlines VAT Refund Process, Boosting Home-Building Refunds
The Federal Tax Authority (FTA) in the United Arab Emirates has made significant strides in improving the VAT refund process for UAE nationals building new homes. These efforts, aligned with the UAE's national digital transformation strategy, have led to a substantial increase in refund values and applications.
The upgrades to the refund systems, aimed at enhancing user experience, efficiency, and reducing bureaucracy, have proven successful. The FTA's commitment to digital innovation is evident in the introduction of paperless processes, digitally scanning passports, and syncing purchase invoices. This streamlined approach has encouraged more nationals to apply for their VAT refunds.
Khalid Ali Al Bustani, the Director General of the FTA, has spearheaded these digital initiatives. The FTA's efforts are not limited to VAT refunds; further transformation projects are expected from the authority in 2025 and beyond.
Between June 2024 and June 2025, the total VAT refund value for UAE nationals building new residences increased by 25.7%, reaching AED 3.2 billion. During this period, approximately 3,097 applications were approved, resulting in AED 284.77 million in refunds in just the first half of 2025. Over 7,000 new refund claims were approved, totaling approximately AED 653.1 million.
The rise in VAT refunds can be attributed to the FTA's digital initiatives, such as the 'Maskan' app, which simplifies and streamlines refund claims for nationals building new homes. The overall growth in the UAE’s real estate sector and ongoing residential development projects among nationals likely contribute to increased VAT refund claims.
In summary, the FTA's digital transformation efforts have led to a significant increase in VAT refunds for UAE nationals building new homes. The following table illustrates the key metrics:
| Metric | June 2024 | June 2025 | % Change | |--------------------------------|----------------------|----------------------|-------------------| | Number of Approved Applications| 31,000 | 38,000 | +22.7% | | Total VAT Refund Value (AED) | 2.54 billion | 3.2 billion | +25.7% | | New Applications Approved (1 yr)| N/A | 7,000 | N/A | | Refund Value for New Apps (1 yr)| N/A | 653.1 million AED | N/A |
The FTA's commitment to digital innovation, customer satisfaction, and reducing bureaucracy is evident in these impressive results. The authority's efforts are expected to contribute to cross-sector leadership and continued growth in the UAE.
- The FTA's digital transformation, represented by the 'Maskan' app, is a prime example of leadership in innovation, facilitating easy VAT refund claims for UAE nationals building new homes.
- The increase in VAT refund values and applications can be traced back to the FTA's digital strategies, which not only boost the real estate sector but also position the authority as a vanguard in business technology.
- The significant reduction in refund processing time, due to the FTA's digital initiatives, has demonstrated the authority's effectiveness in financial management and its commitment to enhancing the overall business environment in the UAE.
