The Federal Tax Authority (FTA) has reported a significant increase in the number of individuals who have benefited from the value-added tax (VAT) refund service for UAE nationals building new residences.
The FTA stated that from the beginning of the service in 2018 until the end of last year, over 27,330 applications were approved for male and female UAE nationals, who were refunded the VAT they paid for building new residences. The total value of these applications exceeded AED2.02 billion.
The FTA announced that approved applications' number and total value have continuously increased.
Statistics showed that the number of approved applications increased from 270 in 2018, valued at AED9.11 million to 1,900 applications in 2019, totalling AED121.46 million.
The number of approved applications further grew to 3,750, valued at AED301.35 million, marking a significant growth of 97.16 percent in approved applications and 148.1 percent in tax refund value in 2020.
According to the FTA, there was a significant increase in the number of approved tax refund applications in 2021, with a total of about 5,990 applications worth AED467.52 million. This represented an annual growth of 59.62 percent in the number of approved applications and 55.14 percent in the tax refund value.
In 2022, the number of approved tax refund applications increased to 7,170 totalling AED583.38 million, representing an annual growth of 19.61 percent in the number of approved applications and 24.78 percent in the tax refund value.
In 2023 the number of approved applications for tax refunds from UAE nationals who built new residences increased significantly continued to increase. The total value of these refunds was AED720.12 million, with about 8,250 applications approved. This represents an annual growth of 15.06 percent in the number of approved applications and 23.44 percent in the tax refund value.
Khalid Ali Al Bustani, Director-General of the Federal Tax Authority (FTA), highlighted a substantial rise in the number of UAE nationals benefiting from the value-added tax refund service for constructing new residences in the past five years. He emphasized the FTA's commitment to ongoing improvements, aligning with top-tier benchmarks, and stated that these efforts are part of a broader strategy to support the happiness, stability, and well-being of UAE nationals in accordance with the directives of the visionary leadership.
The Federal Tax Authority will continue to develop its services and raise awareness among UAE nationals about the easy electronic service for refunding the value-added tax paid on the construction of their new residences.
The Authority will conduct remote video consultations to address all inquiries, provide clarification, and help citizens communicate directly with the FTA staff responsible for the tax refund process. In addition to these consultations, videos and instructional guides will also be available on the FTA website and social media platforms, explaining the steps required to receive a refund. This includes electronically applying along with supporting documents, following which the refund amount will be deposited directly into the citizen's bank account.
News Source: Emirates News Agency
