Government

The Federal Tax Authority (FTA) refunded AED 353.5 million in Value Added Tax (VAT) to approximately 4,000 UAE nationals who built new residences during the first half of 2026, reflecting increased uptake of the government's housing support initiative.

According to the FTA, the number of approved refund applications rose by 27.5% year-on-year, while the total value of refunds increased by 24.1%, supported by continued enhancements to the Authority's digital services.

More UAE Nationals Benefit from VAT Refund Scheme

During the first six months of 2026, the FTA approved around 4,000 VAT refund applications submitted by UAE nationals constructing new homes, compared with 3,100 approved applications worth AED 284.8 million during the same period in 2025.

The latest figures represent:

• 27.5% increase in approved applications.
• 24.1% increase in the total value of VAT refunds.
• AED 353.5 million refunded during the first half of 2026.

Digital Enhancements Improve Customer Experience

H.E. Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority, said the growth reflects continuous improvements to the VAT Refund Scheme for UAE Nationals Building New Residences.

He noted that the Authority has introduced additional measures through its digital refund platform to simplify procedures, accelerate processing times and improve the overall customer experience. The FTA has also expanded awareness campaigns to help eligible citizens better understand the service and its benefits.

Support for the 'Year of Family'

Al Mulla said the Authority recently expanded the range of eligible construction expenses that qualify for VAT refunds, in line with the UAE leadership's declaration of 2026 as the "Year of Family."

He explained that the initiative aims to support the development of a modern housing ecosystem, enhance citizens' wellbeing and promote stable family life by easing the financial burden associated with building new homes.

Automated VAT Refund Process Introduced

The FTA has also introduced a proactive digital service that automatically creates VAT refund applications for eligible UAE nationals through the Maskan smart application once the relevant municipality issues a building completion certificate or, where applicable, a building permit.

Applicants receive SMS and email notifications containing a direct link or QR code that guides them to complete the remaining application procedures within the Maskan app.

AI and Digital Integration Streamline Applications

To further simplify the refund process, the FTA has introduced several digital enhancements, including:

1. Automatic population of supplier invoice details within the Maskan application.
2. Reduced banking information requirements through integration with the Central Bank of the UAE.
3. Automatic compilation of invoices into a single Excel file, eliminating manual data entry.
4. Artificial intelligence-powered verification of refund amounts and suppliers' Tax Registration Numbers (TRNs) to improve accuracy and speed up processing.

The Authority said these improvements are designed to make the VAT refund process faster, more efficient and easier for eligible UAE nationals.

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