The UAE's Federal Tax Authority (FTA) is deploying artificial intelligence across its tax administration system, streamlining refund processing, improving compliance tools and aligning the country's tax framework with its broader digital transformation agenda.
The initiative is anchored in the FTA's AI Strategy, which operates in line with the UAE Artificial Intelligence Strategy 2031.
Director-General Abdulaziz Mohammed Al Mulla said the Authority is applying AI to data analysis, risk assessment, request processing and process automation, following a phased implementation model that moves from proof of concept to full operation.
One of the most visible outcomes is the transformation of the VAT refund service for UAE nationals building new homes. Through the Maskan smart application, refund requests are now generated automatically once a building completion certificate or permit is issued, with citizens notified by text and email to complete the process electronically. Since the service launched through to the end of March 2026, the total value of VAT refunded under the new home construction scheme reached approximately AED 3.72 billion.
The tourist VAT refund system has seen parallel upgrades, with self-service kiosks deployed at departure points, hotels and shopping centres. The system readiness index hit 100 percent in the first quarter of 2026, with the average refund processing time clocking in at one minute and ten seconds.
The EmaraTax platform continues to serve as the central hub for tax registration, return filing and payments, and now supports the registration of sweetened beverages under the newly introduced tiered volumetric excise tax model, which calculates tax based on sugar content to encourage healthier product formulations.
Al Mulla noted that the UAE is among the first countries in the region to adopt this mechanism, with the expectation that it will push beverage manufacturers to reduce sugar levels and expand lower-sugar alternatives.
News Source: Emirates News Agency
