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The Federal Tax Authority (FTA) has reported a strong rise in the number of UAE Nationals benefiting from the VAT Refund Scheme for Building New Residences in the first half of 2026.
According to the Authority, around 4,000 refund applications were approved during this period for VAT paid on the construction of new homes. The total refund value reached AED 353.5 million. This is up from 3,100 approved applications worth AED 284.8 million in the first half of 2025. That means a 27.5% increase in approved applications and a 24.1% rise in the value of VAT refunded.
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His Excellency Abdulaziz Mohammed Al Mulla, Director General of the FTA, said these results show the ongoing improvement of the VAT Refund Scheme for UAE Nationals Building New Residences. He said the Authority has added more measures to make the process simpler and faster through its digital refund platform. He also noted that the FTA continues to raise awareness of the service through different channels, while explaining its benefits and recent updates to improve customer experience.
He added that, following the UAE leadership’s decision to mark 2026 as the Year of Family, the FTA launched a new initiative to expand the list of eligible expenses for VAT refunds related to new home construction for UAE nationals. This supports a modern housing system that helps improve citizens’ wellbeing and promotes a stable family life.
The FTA said it has also introduced a proactive service for UAE nationals who have built or completed their private residences. With this service, a VAT refund application is created automatically through the Maskan smart app once the relevant municipality issues the building completion certificate or, where applicable, the building permit.
After the application is created, the citizen receives SMS and email alerts confirming the VAT refund request has been generated. These messages also include a link or QR code that directs the user to the Maskan app to finish the required steps.
Invoice details are automatically added to the citizen’s account in the Maskan application once suppliers registered for VAT issue the invoices. The number of banking details needed has also been reduced, thanks to integration with the Central Bank of the UAE.
The FTA added that invoice information is now collected automatically into one Excel file, instead of being entered manually. Artificial intelligence is also used to check the accuracy of refund amounts and suppliers’ Tax Registration Numbers (TRNs), while all invoices are combined in one file for easier processing.
Read More: Everything You Need To Know About Vat in UAE
This article was posted on UAEMoments
