The Federal Tax Authority (FTA) has greenlit 30,920 applications for Value Added Tax (VAT) refunds to Emirati citizens, totaling Dh2.54 billion in the first half of 2024, reflecting a 32.45% surge from the same period in 2023. By the close of the first half of 2023, the total approved applications stood at 23,340, valued at Dh1.54 billion, marking a 65.07% rise in the value of refunded amounts within a year.
In a Monday press release, the FTA detailed that from the end of June 2023 to the end of June 2024, approximately 7,580 new applications were approved, enabling citizens to recover over Dh1 billion in taxes paid for constructing new homes. During the first six months of this year, 3,590 new applications were approved, resulting in tax refunds of Dh336.09 million.
Khalid Ali Al Bustani, the FTA's director-general, credited the substantial increase in the number of UAE citizens benefiting from the Tax Refund Scheme for UAE Nationals Building New Residences to heightened tax awareness and ongoing enhancements to the service since its inception six years ago. "These improvements include the introduction of additional facilities to streamline and accelerate the refund process for UAE citizens who fulfill the legal requirements for tax refunds," Al Bustani noted. "This initiative aligns with the FTA's strategy to prioritize citizens' happiness, in accordance with our wise leadership's vision to establish and enhance a modern housing system for Emirati citizens and elevate their living standards," he added.
This year, the FTA launched its Maskan smart application, offering further conveniences for UAE citizens to request VAT refunds on new home constructions through 100% digital and paperless procedures. "This enables Emirati citizens to leverage digitization efforts and expedite the tax refund process," Al Bustani explained. "The initiative is part of the Authority's contributions under the Transformational Projects Series, aiming to advance digital services, reduce paper consumption, and minimize the number of required documents, among other benefits."
The FTA has multiple ongoing initiatives to refine the service and continue its educational campaigns to inform citizens about the streamlined e-services available for applying for VAT refunds on new residences. These initiatives include virtual meetings for consultations and clarifications, direct communication with FTA staff handling VAT refunds on new homes, and other measures to facilitate swift transaction completion for taxpayers. Statistics show a significant increase in both the number and total value of approved applications since the service's introduction to UAE citizens. Approved applications jumped from 270 requests worth Dh9.11 million in 2018 to 8,250 applications worth Dh720.12 million in 2023.
