The Federal Tax Authority has recorded a sharp rise in beneficiaries of its VAT Refund Scheme for UAE Nationals Building New Residences, approving close to 4,000 applications worth AED353.5 million in the first half of 2026.
The figures mark a 27.5 percent increase in approved applications and a 24.1 percent rise in refunded value compared to the same period last year, when 3,100 applications worth AED284.8 million were approved.
Abdulaziz Mohammed Al Mulla, Director-General of the FTA, attributed the growth to continuous improvements to the scheme, including new measures introduced through the authority's digital refund platform to simplify and speed up procedures. He added that the FTA has also expanded outreach efforts to raise awareness of the service and its benefits among citizens.
The improvements come as part of the UAE's designation of 2026 as the Year of Family, under which the FTA broadened the scope of expenses eligible for VAT refunds tied to residential construction, part of a wider push to support citizen wellbeing and family stability through a stronger housing ecosystem.
Among the key upgrades is a proactive service that automatically generates VAT refund applications through the Maskan smart application once a municipality issues a building completion certificate or building permit. Applicants receive SMS and email alerts with a link or QR code guiding them to complete the process on the platform.
The system also auto-populates invoice details as suppliers issue them, compiles all invoice data into a single Excel file and reduces the banking information required from users by integrating with the Central Bank of the UAE. Artificial intelligence now verifies refund amounts and suppliers' tax registration numbers, further streamlining the process for applicants.
News Source: Emirates News Agency
