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The Federal Tax Authority approved the refunds as part of its ongoing VAT refund scheme for Emirati citizens building private homes, with the figure marking a notable increase from prior periods. According to the FTA, the refunds covered eligible construction-related expenses submitted and verified in the January-to-June period. The authority processed claims efficiently through updated procedures that reduced documentation burdens for applicants.
FTA figures show the Dh353.5 million in refunds reflected a 24.1 per cent rise in value from Dh284.8 million disbursed to 3,100 nationals in the first half of 2025. The number of approved applications climbed 27.5 per cent over the same comparison period, the authority reported. These gains align with broader efforts to streamline access to the scheme for UAE citizens pursuing home ownership.
The Federal Tax Authority attributed the growth in part to enhancements in its digital platform, which now integrates with the Maskan smart application to automate refund requests once a building completion certificate is issued. According to the FTA, the system uses artificial intelligence to verify amounts, cross-check supplier tax registration numbers and consolidate invoices into a single output file. Banking details are linked directly with the Central Bank of the UAE, further simplifying the process for nationals.
An FTA announcement in June 2026 expanded the scope of expenses eligible for refunds under the Year of Family initiative, applying to all claims submitted on or after January 1 of this year. The authority projected at that time that the change would generate an estimated Dh200 million in additional VAT savings for UAE nationals across 2026. This adjustment built on the core scheme, which has supported citizens in claiming back tax on construction materials and services for non-business residences since its introduction.
The Federal Tax Authority continues to promote awareness of the refund mechanism through targeted campaigns, resulting in higher uptake among eligible Emiratis. Data from the authority places the average refund value per application in the first half around Dh88,000, though individual amounts vary based on project scale and eligible costs. Officials have emphasised that the scheme forms a key component of national housing support policies without altering underlying VAT rules for suppliers.
