FTA approves $691m in home-construction tax refunds for UAE nationals
ABU DHABI, August 12, 2024
The Federal Tax Authority (FTA) has approved a total of 30,920 applications for Value Added Tax (VAT) refunds worth a total of AED2.54 billion ($691 million) submitted by Emirati citizens for taxes incurred on building new residences since the service was launched and until the end of the first half of 2024, reported Wam.
In comparison, by the end of the H1 last year, the total number of approved applications amounted to 23,340, with a total value of AED1.54 billion. This marks a 32.45 percent increase in the number of approved applications and a 65.07% increase in the value of refunded amounts over a period of 12 months.
The FTA explained that in the year between the end of June 2023 and the end of June 2024, 7,580 new applications were approved, allowing citizens to reclaim over AED1 billion in taxes they paid on building new homes.
In the first six months of this year, 3,590 new applications were approved, refunding AED336.09 million in taxes, it stated.
Khalid Ali Al Bustani, Director-General of the FTA, attributed the significant increase in the number of UAE citizens benefiting from the Tax Refund Scheme for UAE Nationals Building New Residences to increased tax awareness and continuous improvements made by the Authority to the service since its launch six years ago.
"These enhancements include introducing more facilities to streamline and expedite the refund process for UAE citizens who meet the legal requirements for tax refunds," stated Al Bustani.
He pointed out that the FTA launched its Maskan smart application this year, providing further facilities for UAE citizens to request refunds on VAT incurred on the construction of their new homes with 100% digital and paperless procedures.
"This allows Emirati citizens to benefit from digitisation efforts and expedite the tax refund process," he said.
"The initiative forms part of the Authority’s contributions under the Transformational Projects Series, which aims to advance digital services, limit paper consumption, and minimise the number of required documents, among other facilities," he added.-TradeArabia News Service
