The Federal Tax Authority said approved applications under the VAT Refund Scheme for UAE Nationals Building New Residences rose 27.5 percent in the first half of 2026.
July 23, 2026 | Riya Malhotra | UAE | Construction
His Excellency Abdulaziz Mohammed Al Mulla, Director General of the FTA. Image Courtesy: FTA
The Federal Tax Authority has approved approximately 4,000 VAT refund applications from UAE nationals building new residences during the first half of 2026, with total refunds reaching AED353.5 million.
The refunds were issued under the VAT Refund Scheme for UAE Nationals Building New Residences, which allows eligible UAE citizens to recover VAT incurred during the construction of their new homes.
According to the FTA, the first-half performance reflects a significant increase compared with the same period last year. In the first half of 2025, the authority approved 3,100 applications worth AED284.8 million. This represents a 27.5 percent increase in approved applications and a 24.1 percent rise in the total value of VAT refunded.
His Excellency Abdulaziz Mohammed Al Mulla, Director General of the FTA, said the results reflect ongoing improvements to the refund scheme and the authority’s digital platform.
“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,” he said.
He added that the FTA continues to raise awareness of the service through several channels, while providing guidance on its benefits and recent improvements.
Al Mulla also said that, in line with the UAE leadership’s designation of 2026 as the “Year of Family”, the FTA has launched an initiative to expand the scope of eligible expenses that qualify for VAT refunds related to new residences built by UAE nationals.
He said the initiative supports the development of a modern housing ecosystem that enhances citizens’ wellbeing and contributes to stable family life.
The FTA has also launched a proactive service for UAE nationals who have built or completed construction of private residences. Through the service, a VAT refund application can be generated automatically through the Maskan smart application once the relevant municipality issues the building completion certificate or, where applicable, the building permit.
Once the application is created, the citizen receives SMS and email notifications confirming that a VAT refund request has been generated. The notifications include a link or QR code directing the citizen to the Maskan application to complete the required procedures.
The process has also been further digitised. Invoice details are automatically populated into the citizen’s account 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.
The FTA said invoice information is now automatically compiled into a single Excel file, replacing details that previously had to be entered manually. Artificial intelligence is also used to verify refund amounts and suppliers’ Tax Registration Numbers, while all invoices are consolidated into one file.
The increase in refund applications highlights the continued role of digital government services in supporting UAE nationals building new homes, while also improving access to housing-related financial relief.
Source: Official Communications
