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    You are at:Home»Business»AED353.5 million refunded to 4,000 UAE Nationals for Building New Residences in H1
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    AED353.5 million refunded to 4,000 UAE Nationals for Building New Residences in H1

    Editorial TeamBy Editorial TeamJuly 22, 2026
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    ABU DHABI, 21st July, 2026 (WAM) — The Federal Tax Authority (FTA) confirmed a significant increase in the number of beneficiaries of the VAT Refund Scheme for UAE Nationals Building New Residences in the first half of 2026.

    The authority stated that approximately 4,000 refund applications submitted by UAE nationals for VAT incurred during the construction of their new residences were approved in H1 2026, with total refunds reaching AED353.5 million.

    The authority said this compares to 3,100 approved applications worth AED284.8 million in H1 2025, representing a 27.5 percent increase in the number of approved applications and a 24.1 percent increase in the value of VAT refunded.

    Abdulaziz Mohammed Al Mulla, Director-General of the FTA, said, “These positive results reflect the continuous enhancement of the VAT Refund Scheme for UAE Nationals Building New Residences, including the introduction of additional measures to simplify and accelerate procedures through the Authority’s digital refund platform.

    “The FTA also continues to raise awareness of the service by providing comprehensive guidance across a range of channels, highlighting its benefits and the ongoing improvements introduced to enhance the customer experience.”

    In line with the directives of the UAE’s wise leadership designating 2026 as the ‘Year of Family’, the FTA launched an initiative to expand the scope of eligible expenses that qualify for VAT refunds related to the construction of new residences for UAE nationals. This initiative contributes to the development of a modern housing ecosystem that enhances citizens’ wellbeing and supports a stable and dignified family life.

    The FTA has also launched a proactive service for UAE nationals who have built or completed the construction of their private residences. The service enables a VAT refund application to be generated automatically through the Maskan smart application once the relevant municipality issues the building completion certificate or, where applicable, the building permit.

    After the refund application is created, the citizen receives SMS and email notifications confirming that a VAT refund application for the residence has been created. The notifications also include a link or QR code directing the citizen to the Maskan application to complete the required procedures.

    Invoice details are automatically populated into the citizen’s account within the Maskan application once the invoices are issued by registered suppliers. In addition, the number of required banking-information fields has been reduced through integration with the Central Bank of the UAE.

    Invoice information is also automatically compiled into a single Excel file containing all the details that previously had to be entered manually. Artificial intelligence technology verifies the accuracy of refund amounts and suppliers’ Tax Registration Numbers (TRNs), while all invoices are consolidated into a single file.

    Source: Emirates News Agency

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