UAE government authorizes AED 3.2 billion in VAT refunds for homebuilders of Emirati citizens by June 2025.
Federal Tax Authority Streamlines Services with Digital Transformation
The Federal Tax Authority (FTA) in the United Arab Emirates (UAE) has embarked on a digital transformation journey, focusing on enhancing digital integration, streamlining procedures, and improving user experience through fully digitized and paperless processes.
As of June 2025, significant progress has been made. The FTA has rolled out the "Maskan" smart application for VAT refunds for UAE nationals building new residences, simplifying and digitizing the refund process. Additionally, the world's first e-commerce VAT refund system for tourists has been launched, enabling seamless digital invoice sharing, passport scanning, and tax credit refunds, all conducted paperlessly.
The convenience doesn't end there. The number of self-service machines for tourists to claim VAT refunds has expanded to 96 across major locations, allowing transactions in about two minutes. These initiatives are in line with the UAE government’s broader digital transformation strategy aimed at reducing bureaucracy and enhancing customer satisfaction.
The FTA's commitment to customer satisfaction and digital innovation is evident in the approval of 3,097 applications and the digitization of passport scanning. Khalid Ali Al Bustani, the Director General of the FTA, is leading these efforts, which are aligned with the UAE's national digital transformation strategy.
Moreover, the FTA engages actively with the business community through Customer Councils and workshops on various digital tax services platforms like "EmaraTax," aiming to reduce redundant tax procedures and promote data sharing among government entities. This participative approach supports the ongoing development of efficient and user-friendly digital tax services across the UAE.
In a bid to further improve services, the FTA has conducted 85 awareness activities involving 28,000 beneficiaries to promote these digital services and gather stakeholder input to continuously enhance service quality and flexibility.
Looking ahead, further transformation projects are expected to follow in 2025 and beyond, as the FTA continues its mission to digitalize tax administration, improve efficiency, and provide a seamless user experience. The goal is to create a paperless, integrated, and customer-centric tax administration system.
[1] Gulf News. (2022, March 28). FTA launches e-commerce VAT refund system. Retrieved from https://gulfnews.com/business/economy/uae/fta-launches-e-commerce-vat-refund-system-1.1648470741880
[2] Zawya. (2021, December 15). FTA implements paperless VAT refund process for UAE nationals building new homes. Retrieved from https://www.zawya.com/mena/en/press-release/companies-news/fta-implements-paperless-vat-refund-process-for-uae-nationals-building-new-homes-9c041e4
[3] Khaleej Times. (2021, December 15). FTA launches paperless VAT refund system for UAE nationals building new homes. Retrieved from https://www.khaleejtimes.com/business/government/fta-launches-paperless-vat-refund-system-for-uae-nationals-building-new-homes
[4] Gulf News. (2021, December 15). FTA launches paperless VAT refund system for UAE nationals building new homes. Retrieved from https://gulfnews.com/business/economy/uae/fta-launches-paperless-vat-refund-system-for-uae-nationals-building-new-homes-1.1640689998501
[1] The FTA's digital transformation initiatives, such as the e-commerce VAT refund system, demonstrate innovative leadership in finance and technology, facilitating transformation in the business sector.
[2] The streamlined VAT refund process for UAE nationals building new homes through digitization is a testament to the FTA's commitment to customer satisfaction and efficient business operations.
[3] With the expansion of self-service machines for VAT refunds, Khalid Ali Al Bustani, the Director General of the FTA, is fostering a customer-centric business environment that embraces digital innovation.
