VAT Refund for UAE Nationals Building New Residences in the UAE

VAT Refund for UAE Nationals Building New Residences in the UAE

If you’re a UAE national building your own private home, you may be entitled to get back the VAT you paid on construction expenses. Here’s a simple explanation of how it works and how to apply.

Helping Emiratis Turn Building Projects into Homes

As of June 2025, the Federal Tax Authority (FTA) has received and approved over 38,000 VAT refund applications for newly built residences — reimbursing more than AED 3.2 billion to UAE nationals.

That’s a 25% rise from the previous year, proving how effectively the scheme supports Emiratis in recovering VAT on construction expenses as they build their own homes.

This initiative is not merely a tax benefit — it’s a national housing support program designed to make homeownership more affordable, encourage local investment, and offset rising construction costs.

For UAE nationals, this means that VAT paid on essential building expenses can be reclaimed, freeing up more funds to create a comfortable and high-quality living space.

What is the New Residences VAT Refund Scheme?

Introduced alongside VAT in 2018, The Federal Tax Authority (FTA) allows UAE nationals to claim a refund of VAT paid on certain expenses related to building their own private residence — not for investment or business purposes.

The process has become increasingly accessible with the launch of the FTA’s EmaraTax portal and Maskan app, enabling users to apply online, upload documents, and track their refund requests effortlessly.

Who is Eligible?

The refund applies exclusively to UAE nationals constructing a new private residence intended for personal or family use.

Applicants must hold a valid Family Book and ensure the property meets residential standards — including living facilities like a kitchen, bathroom, and bedrooms.

You must apply within 12 months from the date your Building Completion Certificate is issued

What Expenses Qualify for a Refund?

Refunds can be claimed on the following qualifying expenses:

· Construction materials such as cement, tiles, wiring, flooring, and plumbing equipment.

· Services of architects, consultants, engineers, and contractors involved in the project.

· Home Appliances: Doors, central air conditioning and split units ,kitchen sicks, sanitary units, Fire alarms

Note : Make sure all your construction-related expenses are completed before applying. The FTA won’t accept invoices dated after you submit your refund request.

What Expenses not Qualify for a Refund?

· Furniture such as Sofa, Tables, chairs

· Landscaping: Trees, Grass, Plants

· Constructions: Swimming pools

· Home appliances: Fridge, Oven, Washing machine

How Alwahat Accounts and Internal Audit Services Can Help

Even though the VAT refund process is well-defined, compiling documents, ensuring compliance, and meeting FTA timelines can often feel complex.

That’s where Alwahat Accounts and Internal Audit Services steps in.

As experts in UAE tax law and refund management, we guide homeowners through every step of the refund process — from verifying invoices and contracts to ensuring full compliance with FTA guidelines.

Our professionals make sure your VAT refund application is error-free, timely, and compliant, helping you receive your refund without unnecessary delays.

If you are planning to build your home, our team is ready to assist you in recovering VAT efficiently and seamlessly — so you can focus on what truly matters: building your dream home.

📞 Contact Alwahat Accounts and Internal Audit Services
🌐 www.alwahataudit.com
📧 info@alwahataudit.com
📱 +971 50 132 7005

Disclaimer:

This article is intended for general informational purposes only and does not constitute legal or tax advice. Eligibility for VAT refunds depends on individual circumstances and compliance with the Federal Tax Authority (FTA) requirements. For tailored guidance, contact Alwahat Accounts and Internal Audit Services before submitting your VAT refund application.