FTA refunds AED353.5 million to 4,000 UAE nationals building homes in 2026

Dubai's Federal Tax Authority (FTA) refunded AED353.5 million to approximately 4,000 United Arab Emirates nationals in the first half of 2026 for constructing new residences.

The authority stated that the approved VAT Refund Scheme applications so far this year have increased by 25.5 per cent, compared to 3,100 approved applications worth AED284.8 million in H1 2025, with also a 24.1 per cent increase in the value of VAT refunded.

Abdulaziz Mohammed Al Mulla, Director-General of the FTA, said the 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.

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 is said to contribute to the development of a modern housing ecosystem that enhances citizens’ wellbeing and supports a stable and dignified family life.

The FTA has also launched a proactive service for UAE nationals who have built or completed the construction of their private residences.

The service enables a VAT refund application to be generated automatically through the Maskan smart application once the relevant municipality issues the building completion certificate or, where applicable, the building permit.

After the refund application is created, the citizen receives SMS and email notifications confirming that a VAT refund application for the residence has been created, including a link or QR code directing the citizen to the Maskan application to complete the required procedures.

Invoice details are automatically populated into the citizen’s account within the Maskan application once the invoices are issued by registered suppliers. In addition, the number of required banking-information fields has been reduced through integration with the Central Bank of the UAE.

إذا كنت من مواطني الدولة وتبني مسكنك الجديد، يمكنك استرداد ضريبة القيمة المضافة بكل سهولة عبر تطبيق "مسكن"

حمل التطبيق وقدم طلبك من خلال منصة رقمية موحدة، لتجربة رقمية سهلة وسلسة.#الهيئة_الاتحادية_للضرائب #مسكن pic.twitter.com/pv5vBp4FZW

— Federal Tax Authority - الهيئة الاتحادية للضرائب (@uaetax) July 21, 2026