ABU DHABI: The Federal Tax Authority (FTA) has announced that AED3.2 billion in VAT refunds have been issued to UAE nationals building new residences by June 2025, reflecting a significant rise in applications and overall refund value over the past year.
The FTA confirmed that since the service was introduced around eight years ago, a total of 38,000 approved applications have been processed for Emiratis constructing their own homes. This is a 22.74% increase from the 31,000 applications recorded by June 2024, and a 25.72% rise in the total refund amount, which stood at AED2.54 billion last year.
Between June 2024 and June 2025 alone, 7,000 new applications were approved, equating to AED653.1 million in refunds. For the first half of 2025, the number of approved applications reached 3,097, with a value of AED284.77 million.
FTA Director General Khalid Ali Al Bustani said that the Authority’s efforts to digitalise and streamline tax refund processes have significantly enhanced operational efficiency. He highlighted the successful rollout of the ‘Maskan’ smart application, enabling fully digitised and paperless VAT refund services for Emiratis.
Additionally, the FTA reported ongoing growth in its tourist VAT refund system, now linked to 18,410 retail outlets across the UAE. The number of self-service tax refund machines reached 96 by June, located at malls, hotels, and departure points, automating refunds in under two minutes.
Al Bustani added that the FTA’s latest initiative—the world’s first VAT refund system for e-commerce purchases by tourists—was launched last December. It allows tourists to scan passports, access digital invoices, and receive their VAT refunds digitally during their stay.
