The FTA has approved AED2.45 billion in home-construction tax refunds for UAE nationals.

The Federal Tax Authority (FTA) has approved a total of 30,920 applications for Value Added Tax (VAT) refunds worth a total of AED 2.54 billion. These applications were submitted by Emirati citizens for taxes incurred on building new residences. This covers the period since the service was launched up until the end of the first half of 2024.

By the end of the first half of 2023, the FTA had approved 23,340 applications, with a total value of AED 1.54 billion. This indicates a 32.45 percent increase in the number of approved applications and a 65.07 percent increase in the value of refunded amounts over a period of 12 months.

According to a press statement issued today, between the end of June 2023 and the end of June 2024, 7,580 new applications were approved, allowing citizens to reclaim over AED 1 billion in taxes paid on building new homes. In the first six months of this year, 3,590 new applications were approved, refunding AED336.09 million 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 for UAE Nationals Building New Residences to increased tax awareness and continuous improvements made by the Authority to the service since its launch six years ago.

Al Bustani noted that 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 with 100 percent digital and paperless procedures.

Statistics from the Federal Tax Authority reveal a notable increase in the number and total value of approved applications since the service was first offered to UAE citizens. The number of approved applications rose from 270 requests worth AED 9.11 million in 2018 to 1,900 applications worth AED121.46 million in 2019.

The number grew further to 3,750 applications valued at AED301.35 million in 2020, marking a significant 97.16 percent increase in the number of approved applications and a 148.1 percent uptick in refunded VAT amounts. This upward trend continued, with 5,990 applications worth AED467.52 million approved in 2021, marking an annual growth of 59.62 percent in the number of approved applications and 55.14 percent in refunded VAT amounts.

In 2022, the number of approved applications rose to 7,170 requests worth AED583.38 million, revealing a growth of 19.61 percent in the number of approved applications and 24.78 percent in refunded VAT amounts. Figures for 2023 indicated continued growth, with a total of 8,250 applications worth AED720.12 million approved, marking a 15.06 percent annual growth in approved requests and 23.44 percent in refunded VAT amounts.