The VAT refund program for the UAE nationals, when they are constructing new homes, enables qualified Emirati citizens to recover the VAT paid when constructing a new home for their use. This is a synopsis that needs to be eligible for the VAT reimbursement.
- A UAE national is required.
- The refund needs to be related to building a new residential structure, not a business one.
- The applicant's primary residence or that of their family must be in the building.
- The building needs to be brand-new; it can't be an addition or renovation of an existing property. Refundable expenses are eligible. The following items are eligible for a VAT refund.
- Building materials: Components that are integrated into the structure over time. Fees for construction services are referred to as contractor services. Engineers, architects, and consultants are associated with design and oversight. Please take note that non-permanent fixtures, appliances, and furniture are not eligible. The refund period is limited.
- You have six months from the building's completion date to apply (i. e. the day the municipality or appropriate authority certifies it as finished.
Documents Required. You’ll need:
- A duplicate of the passport and Emirates ID.
- The title deed to the property.
- The certificate of completion.
- Verification of suppliers or contractors' VAT registration.
- Clearly stated VAT on invoices.
- Account information for the bank.
The Application Process.
- The Federal Tax Authority (FTA) website will offer a VAT refund form that one can download and fill out.
- Use a VAT Refund Desk or the FTA portal to electronically submit it.
- Await review; the FTA might ask for more details.
- The bank account will receive a direct VAT refund if it is accepted. For instance. One could request a full refund if you paid AED 100000 in eligible VAT during construction and all your documentation is still valid.
