The Federal Tax Authority approved around 4,000 VAT refund applications submitted by UAE nationals building new residences in the first half of 2026, with total refunds reaching AED 353.5 million.
UAE’s Federal Tax Authority (FTA) has reported on 21 July 2026, an increase in the number of beneficiaries of the VAT Refund Scheme for UAE Nationals Building New Residences during the first half of 2026.
The Authority approved approximately 4,000 refund applications submitted by UAE nationals for VAT incurred during the construction of their new residences in the first six months of 2026, with the total value of refunds reaching AED 353.5 million.
This compares with 3,100 approved applications with a total refund value of AED 284.8 million during the first half of 2025. The figures represent a 27.5% increase in the number of approved applications and a 24.1% increase in the value of VAT refunded.
“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,” said HE Abdulaziz Mohammed Al Mulla, Director General of the FTA.
“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,” he added.
The FTA said that, alongside the initiative, it had launched a proactive service for UAE nationals who have built or completed the construction of their private residences.
The service allows a VAT refund application to be created automatically through the Maskan smart application once the relevant municipality issues the building completion certificate or, where applicable, the building permit.
Following the creation of the refund application, citizens receive SMS and email notifications confirming that an application for the residence has been created. The notifications include a link or QR code directing citizens to the Maskan application to complete the required procedures.
The Authority stated that invoice details are automatically populated into citizens’ accounts within the Maskan application once invoices are issued by registered suppliers. The number of required banking-information fields has also been reduced through integration with the Central Bank of the UAE.
Invoice information is automatically compiled into a single Excel file containing 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.
