The Federal Tax Authority approved approximately 4,000 VAT refund applications from UAE nationals building new homes in the first half of 2026, up from 3,100 approvals in the same period last year. The total value refunded rose to AED 353.5 million, compared to AED 284.8 million in H1 2025, a 24.1% increase in value and a 27.5% rise in application volumes.
“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. The FTA also continues to raise awareness of the service by providing comprehensive guidance across a range of channels, highlighting its benefits and the ongoing improvements introduced to enhance the customer experience,” Abdulaziz Mohammed Al Mulla, Director General of the FTA said in a statement.
“In line with the directives of the UAE’s wise leadership designating 2026 as the ‘Year of Family’, the FTA launched an initiative to expand the scope of eligible expenses that qualify for VAT refunds related to the construction of new residences for UAE nationals. This initiative contributes to the development of a modern housing ecosystem that enhances citizens’ wellbeing and supports a stable and dignified family life,” he added.
The FTA also expanded the range of expenses eligible for refunds under a 2026 initiative tied to the UAE’s designation of the year as the Year of Family. Al Mulla said the initiative “contributes to the development of a modern housing ecosystem that enhances citizens’ wellbeing and supports a stable and dignified family life.”
On the process side, the authority launched a proactive service through the Maskan smart application that automatically generates a refund application once a municipality issues a building completion certificate or building permit.
Citizens then receive SMS and email notifications with a link or QR code to complete the process. Invoice details from registered suppliers are pre-populated into the applicant’s account, and AI tools verify refund amounts and suppliers’ Tax Registration Numbers. Banking information fields have also been reduced through integration with the Central Bank of the UAE.
