The Federal Tax Authority (FTA) has seen a significant increase in the number of Value Added Tax (VAT) refunds approved for Emirati citizens in the first half of 2024. A total of 30,920 applications were approved, amounting to Dh2.54 billion, reflecting a 32.45 per cent increase compared to the same period in 2023. This marks a 65.07 per cent increase in the value of refunded amounts over the past 12 months.
The FTA revealed that between June 2023 and June 2024, 7,580 new applications were approved for citizens to reclaim over Dh1 billion in taxes paid on building new homes. In the first half of 2024 alone, 3,590 new applications were approved, refunding Dh336.09 million in taxes. Khalid Ali Al Bustani, director-general of the FTA, attributed the increase in beneficiaries to heightened tax awareness and improvements in the service since its launch six years ago.
The FTA has introduced enhancements to streamline and expedite the refund process for UAE citizens eligible for the Tax Refund Scheme. The authority aims to prioritize citizens’ happiness and provide them with modern housing and high living standards. The recent launch of the Maskan smart application has further facilitated the refund process, allowing Emirati citizens to benefit from digitization efforts and expedite their tax refunds for building new homes.
As part of the Transformational Projects Series, the FTA continues to develop the service and educate citizens on using e-services to apply for VAT refunds on building new residences. Virtual meetings are being organized to offer consultations, clarifications, and direct communication with FTA staff handling VAT refunds on new homes to enable taxpayers to complete transactions as quickly as possible.
Over the years, there has been a noticeable increase in the number and total value of approved applications for VAT refunds for UAE citizens. From 270 requests worth Dh9.11 million in 2018, the number has surged to 8,250 applications worth Dh720.12 million approved in 2023. The FTA’s ongoing efforts and initiatives aim to further increase awareness and accessibility of the Tax Refund Scheme for UAE nationals building new residences.
