The UAE’s Federal Tax Authority is rolling out artificial intelligence across its tax administration, using automated tools to cut processing times, verify refund amounts, and reduce the paperwork burden on both citizens and businesses.
Abdulaziz Mohammed Al Mulla, the FTA’s Director-General, said the Authority applies AI across data analysis, risk assessment, request processing, and process automation. The approach, he said, follows a structured path from identifying high-value use cases and testing concepts, through to full deployment, guided by international benchmarks and internal workshops.
The most concrete example is the VAT refund service for UAE nationals building new homes. Once a municipality issues a building permit or completion certificate, the FTA’s system now automatically generates a refund request and alerts the citizen by text and email. Invoice details are pulled directly into the applicant’s account once a registered supplier issues them. Banking fields have been simplified through integration with the Central Bank of the UAE, and invoices are automatically consolidated into a single file. Since the service launched, the FTA has refunded approximately AED 3.72 billion in VAT to citizens under the new-home construction scheme, through the end of March 2026.
Tourist VAT refunds have seen similar upgrades. Self-service kiosks at airports, hotels, and shopping centres now handle refund requests end-to-end. The system’s readiness index hit 100 percent in the first quarter of 2026, up from 99.99 percent in 2025. Average processing time for a refund request in that quarter was one minute and 10 seconds.
The EmaraTax platform sits at the centre of the FTA’s digital push, serving as the single point for registration, tax return filing, and payment of tax obligations. The Authority has also continued issuing guidance, running in-person events, and offering e-learning to support compliance as the tax system expands.
The FTA has also used tax design to advance public health goals. Its tiered volumetric model for excise tax on sweetened beverages calculates the levy based on sugar and sweetener content, creating a financial incentive for manufacturers to reduce sugar levels. Al Mulla said the UAE was among the first countries in the region to adopt this model, and he expects it to prompt reformulation across the beverage sector. The product registration system on EmaraTax handles registration of beverages under the new mechanism using AI tools.
