• Loading...
  • Loading...

Home-Construction Tax Refunds Surge by 32.4%, Reaching Dh2.45 Billion In H1 2024

Share it:

The Federal Tax Authority (FTA) has announced a significant increase in home-construction tax refunds, approving a total of 30,920 VAT refund applications from Emirati citizens in the first half of 2024. This amounted to Dh2.45 billion, marking a 32.4% increase compared to the same period in 2023.

By the end of H1 2023, the FTA had approved 23,340 applications, totaling Dh1.54 billion. This reflects a 65.07% increase in the value of refunded amounts over the past 12 months. From the end of June 2023 to the end of June 2024, an additional 7,580 new applications were approved, enabling citizens to recover over Dh1 billion in taxes paid for building new homes.

In the first six months of 2024 alone, 3,590 new applications were approved, resulting in Dh336.09 million in tax refunds.
A senior FTA official attributed the significant increase in the number of UAE citizens benefiting from the Tax Refund Scheme for UAE Nationals Building New Residences to heightened tax awareness and continuous improvements to the service since its launch six years ago.

Innovations and Improvements

This year, the FTA introduced the Maskan smart application, providing UAE citizens with a fully digital and paperless process to request VAT refunds on new home construction. This initiative is part of the FTA’s ongoing efforts to streamline its e-services and make the process more accessible.

Additional services include virtual meetings, consultations, clarifications, and direct communication with FTA staff handling VAT refunds on new homes. These services aim to expedite transactions and enhance taxpayer satisfaction.

Growth in Approved Applications

Since the service’s inception, there has been a notable increase in both the number and total value of approved applications. Statistics show that the number of approved applications rose from 270 requests worth Dh9.11 million in 2018 to 8,250 applications worth Dh720.12 million in 2023.

The significant growth in approved applications and refunded amounts highlights the effectiveness of the FTA’s initiatives and the growing awareness among UAE citizens about the benefits of the Tax Refund Scheme for Building New Residences.