Federal Tax Authority Sanctions AED 3.2 Billion in VAT Rebates for UAE Citizens Constructing Homes by June 2025
The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) is making significant strides in improving user experience, efficiency, and cross-sector leadership, as part of the UAE's national digital transformation strategy.
The FTA's commitment to digital innovation and reducing bureaucracy is evident in its ongoing upgrades. Notably, the FTA is upgrading and automating refund systems, digitally scanning passports, and syncing purchase invoices. These efforts are aligned with the UAE's national digital transformation strategy.
Khalid Ali Al Bustani, the Director General of the FTA, is leading these transformative projects. One of the most notable outcomes of these upgrades is the increase in VAT refunds for UAE nationals building new residences from June 2024 to June 2025.
In this period, there was a 22.7% increase in refund applications (from 31,000 to 38,000), and a 25.7% increase in refund value (from AED 2.54 billion to AED 3.2 billion). A total of AED 284.77 million was refunded during this time.
Several factors contribute to this growth. Increased awareness and uptake by UAE nationals leveraging the VAT refund scheme to reduce the cost of constructing their primary residences indicates strong demand for homeownership support. The FTA's digital transformation efforts, including the introduction of the ‘Maskan’ mobile app and a fully paperless submission process, have simplified and sped up VAT refund claim processing, encouraging more applications.
The scheme’s clear eligibility criteria focusing on private residential use only ensure that the refunds go directly to individuals genuinely building homes for personal use, helping sustain growth in applications. The broader government housing policy support towards improving Emirati homeownership rates aligns well with VAT refund incentives, reinforcing their impact.
Therefore, the combined effect of strong policy incentives, efficient digital infrastructure, and rising demand among UAE nationals are the primary drivers behind the notable increase in VAT refunds for new residences in this timeframe. Further transformation projects are expected to follow in 2025 and beyond.
Claiming VAT refunds for building new residences has never been easier. With the FTA's ongoing upgrades, UAE nationals can now claim their refunds in minutes via a seamless, paperless process. This not only improves the user experience but also enhances the efficiency of the FTA's operations.
In conclusion, the FTA's digital transformation initiatives are playing a crucial role in supporting UAE nationals in their pursuit of homeownership, while also contributing to the UAE's national digital transformation strategy. The FTA's commitment to customer satisfaction, digital innovation, and reducing bureaucracy is evident in these transformative projects.
- The FTA's digital transformation, under the leadership of Khalid Ali Al Bustani, has significantly increased VAT refunds for UAE nationals building new residences, reaching AED 3.2 billion from June 2024 to June 2025, reflecting a commitment to innovation and transformation in the field of finance and business.
- The FTA's adoption of technology, such as the 'Maskan' mobile app and a paperless submission process, has transcended the traditional refund system, streamlining the process, and encouraging more applications, thus aligning with the UAE's national digital transformation strategy.
- The FTA's focus on digital innovation and customer satisfaction is not only transforming the finance sector but also contributing to the broader government goals of improving Emirati homeownership rates, demonstrating effective leadership in the realm of technology and business.
