VAT Refund Scheme Benefits 4,000 Emiratis for Building New Residences

By the Editorial Team · Tuesday, July 21, 2026

Around 4,000 Emiratis received VAT refunds totaling Dh353.5 million for new home construction in the first half of 2026, a significant increase from the previous year. The Federal Tax Authority’s new automated refund process and expanded eligible expenses contributed to these gains, potentially saving homeowners about Dh25,000 per claim.

Approximately 4,000 Emiratis benefited from the value-added tax (VAT) Refund Scheme for constructing new homes during the first half of 2026, according to the Federal Tax Authority (FTA). The total value of VAT refund applications submitted reached Dh353.5 million, marking a notable increase compared to the same period in 2025.

In the first half of last year, 3,100 VAT refund applications were approved, amounting to Dh284.8 million. The latest figures indicate a 27.5 percent rise in approved applications and a 24.1 percent increase in refunded amounts year-on-year.

VAT is an indirect tax applied at various stages of the supply chain, generally paid by the end consumer. Registered businesses act as intermediaries, collecting and remitting the tax to the authorities on behalf of the FTA.

In an effort to streamline the refund process, the FTA introduced a proactive service for Emiratis who have built or completed the construction of private residences. This service allows refund applications to be generated automatically through the ‘Maskan’ smart application once the municipality issues the relevant building completion certificate or building permit.

Additionally, the FTA expanded the range of expenses eligible for VAT refunds last month, enabling Emiratis constructing new homes to save an estimated Dh25,000 per claim.

“These results reflect the continuous enhancement of the VAT Refund Scheme for UAE Nationals Building New Residences, including the introduction of additional measures,” said Abdulaziz Mohammed Al Mulla, Director General of the FTA.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.