FTA Approves AED 2.54 billion in VAT Refunds for Emirati Homebuilders by Mid-2024

The Federal Tax Authority (FTA) has announced the approval of 30,920 applications for Value Added Tax (VAT) refunds, totalling AED 2.54 billion, submitted by Emirati citizens for taxes incurred on building new residences by the end of the first half of 2024.

This marks a substantial increase from the same period in 2023, where 23,340 applications were approved, amounting to AED 1.54 billion. The figures reflect a 32.45% rise in the number of approved applications and a significant 65.07% increase in the value of refunded amounts within a year.

Between June 2023 and June 2024, the FTA approved 7,580 new applications, allowing citizens to reclaim over AED 1 billion in taxes paid for new home construction. In the first half of 2024 alone, 3,590 new applications were approved, refunding AED 336.09 million.

Khalid Ali Al Bustani, Director-General of the FTA, attributed this growth to increased tax awareness and ongoing improvements in the VAT refund process. He highlighted the introduction of the Maskan smart application, which enables UAE citizens to request VAT refunds digitally and paperlessly, enhancing the speed and efficiency of the process.

The FTA’s strategy aligns with the UAE leadership's vision to provide citizens with the highest living standards and a modern housing system. The Authority continues to develop its services, offering virtual consultations and educational resources to ensure citizens can easily access VAT refunds on new homes.

Since the launch of the VAT refund service in 2018, the number of approved applications and the value of refunded VAT have steadily increased. From just 270 requests worth AED 9.11 million in 2018, the figures have grown consistently, reflecting the success and importance of the initiative for UAE citizens building new residences.

News Source: Emirates News Agency