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Page last updated:: Sunday, March 10, 2024

The FTA Approves 27,330 Refund Requests Totalling AED 2.02 Billion for UAE Nationals Building New Residences Until 2023

The FTA Approves 27,330 Refund Requests Totalling AED 2.02 Billion for UAE Nationals Building New Residences Until 2023 Sunday, March 10,2024

The FTA Approves 27,330 Refund Requests Totalling AED 2.02 Billion for UAE Nationals Building New Residences Until 2023

 

HE Khalid Ali Al Bustani: Continuous annual growth in the number and value of approved applications is attributed to streamlined procedures and enhanced awareness regarding the Tax refund system for UAE nationals building new residences

 

Abu Dhabi, 10 March 2024: The Federal Tax Authority (FTA) has reported a significant increase in the number of individuals who have benefited from the value-added tax (VAT) refund service for UAE nationals building new residences. The FTA stated that from the beginning of the service in 2018 until the end of last year, over 27,330 applications were approved for male and female UAE nationals, who were refunded the VAT they paid for building new residences. The total value of these applications exceeded AED 2.02 billion.

The FTA announced that the number and total value of approved applications have been continuously increasing. Statistics showed that the number of approved applications increased from 270 in 2018, valued at AED 9.11 million to 1,900 applications in 2019, with a total value of AED 121.46 million.

The number of approved applications further grew to 3,750, valued at AED 301.35 million, marking a significant growth of 97.16% in approved applications and 148.1% in tax refund value in 2020.

According to the FTA, there was a significant increase in the number of approved tax refund applications in 2021, with a total of about 5,990 applications worth AED 467.52 million. This represented an annual growth of 59.62% in the number of approved applications and 55.14% in the tax refund value.

In 2022, the number of approved tax refund applications increased to 7,170 totalling AED 583.38 million, representing an annual growth of 19.61% in the number of approved applications and 24.78% in the tax refund value.

In 2023 the number of approved applications for tax refunds from UAE nationals who built new residences increased significantly continued to increase. The total value of these refunds was AED 720.12 million, with about 8,250 applications approved. This represents an annual growth of 15.06% in the number of approved applications and 23.44% in the tax refund value.

HE Khalid Ali Al Bustani, Director-General of the Federal Tax Authority (FTA), said: “According to recent indicators, there has been a significant increase in the number of UAE nationals benefiting from the the value-added tax refund service for the construction of their new residences over the past five years. These results validate the effectiveness of the FTA's ongoing enhancements and modernisation initiatives aimed at upholding the service quality in alignment with top-tier benchmarks. This progress is part of a broader strategy to implement the directives of the visionary leadership, ensuring comprehensive support to enhance the happiness, stability, and well-being of UAE nationals, who are the foundation of our development plans.”

He added, "The tax refund service for building new residences for UAE nationals has been continuously developed and updated since its inception. The service has been enhanced with additional features to simplify and expedite procedures, which can now be accessed through a transparent and user-friendly electronic platform.

The FTA has effectively raised awareness among UAE nationals regarding the utilization of this service by disseminating information through diverse channels and extending support to simplifying tax refund procedures. Furthermore, individuals are regularly updated on the service's attributes and its ongoing enhancements, ensuring a comprehensive understanding of its benefits and features.”

The Federal Tax Authority will continue to develop its services and raise awareness among UAE nationals about the easy electronic service for refunding the value-added tax paid on the construction of their new residences.

The Authority will conduct remote video consultations to address all inquiries, provide clarification, and help citizens communicate directly with the FTA staff responsible for the tax refund process. In addition to these consultations, videos and instructional guides will also be available on the FTA website and social media platforms, explaining the steps required to receive a refund. This includes electronically submitting the application along with supporting documents, following which the refund amount will be deposited directly into the citizen's bank account.

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