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Tax Refund for UAE Nationals Building New Residences
Page last updated:: Tuesday, January 03, 2023
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Tax Refund for UAE Nationals Building New Residences
  • Service Description
    Use this service if you are a UAE National who has finished building a new residence in the UAE and you wish to submit a refund claim VAT incurred on your construction costs
  • Channels and working hours
    EmaraTax platform:
    24 hours a day, 7 days a week
     
  • Service Fees Details
    Free
  • Estimated Time to Submit Application
    25 Minutes
  • Estimated Time to Complete Application by the FTA
    The estimated time to complete the application by the FTA is 20 business days from receipt of a completed request. In certain instances, however, the FTA may require additional time to process your request and the FTA will inform you when this is required. If the request submitted is incomplete and the FTA requires additional information, you will need to provide the additional information and re-submit the application and once submitted the time process will reset.
  • Required Documents and Forms

    Required documents: 
    It will be necessary for you to prepare the following information in an appropriate format and include it in your online application:
    Copy of your Family Book.
    Copy of your Emirates ID.
    Document to prove building is occupied (for example: Water and electricity delivery bill) (if required).
    Construction contract
    certificate of completion from the municipality 
    Copy of the letter/certificate issued by your bank which includes details such as the account holder’s name, bank’s name and the IBAN.
    Additional declaration form to be stamped by the court where the bank account holder name is different from the applicant’s name (if required).
    Refund requests with an expense certificate from the Emirates Development Bank will be processed according to an expedited procedure (if required).
    Other documentations to support the date the building is occupied (if required).
    Upload funder certificate if refund type is “Housing program and personal fund”.
    Upload supporting document when the "Date of property completion certificate” date is more than 12 months on the application form (if required).
    Building permit copy.
    Property site plan.
    Accepted file types are PDF, JPG, PNG, Excel and JPEG. The individual file size limit is 5 MB.

    Required Forms: 
    Below are the templates that you may need to complete and upload as part of your application:
    1. Power of Attorney form

     
  • Procedures and Steps
    1. Please check the eligibly criteria and Frequently Asked Questions.
    2. Please have the required documents to hand including any required templates. 
    3. Complete and submit the online application form.
    Note: You can save your application and return to continue working on it in your own time.
  • FAQs
    1. What are the deadlines for submitting the UAE National Home Builders refund application?
    The refund request must be submitted with the FTA within 12 months from the date of completion of the newly built residence which is the earlier of the date: 
    The residence becomes occupied; or
    When it is certified as completed by a competent authority in the UAE (the building completion certificate).

    2. Can a refund request be submitted after 12 months have elapsed from the date of completion as per the building completion certificate?
    You are required to submit a refund form along with supporting documentation within 12 months from the date of completion of the newly built residence. Requests submitted after 12 months have elapsed from the date of completion as per the building completion certificate will generally be rejected. However, in certain instances, the request may still be accepted.

    3. What is the certain condition where you can request refund claim after the due date?   
    Where the refund application is submitted post the stipulated due date, the request may still be accepted in certain instances such as when:
    The applicant can’t submit the refund due to involvement in military service or due to illness.
    There is any legal dispute to the new residence.
    Due to some technical issue which made the residence not to occupy even after obtaining the completion certificate.

    4. What expense items are regarded as eligible for this refund scheme?
    In order for a refund claim to be considered by the FTA, it must meet the following conditions: 
    Expenses must relate to a newly constructed building which is to be used solely as a residence of the applicant and/ or his/ her family. 
    Services provided by contractors, including services of builders, architects, engineers, and other similar services necessary for the successful construction of a residence. 
    Building materials, being goods of a type normally incorporated by builders in a residential building or its site, but not including furniture or electrical appliances. 

    5. What expense items are regarded as not eligible for this refund scheme?
    The UAE national can claim VAT against construction related expenses, but the list excludes the following:
    Furniture
    Electrical appliances
    Landscaping, such as trees, grass and plants
    Garden furniture and ornaments and sheds
    Swimming pools
    Children play structures

    6. Is it possible to request a refund for more than one residence?
    The applicant may request a refund for more than one residence; however, a separate request must be filed for each residence. Moreover, each request must meet the requirements on an independent basis.

    7. Is it possible to submit multiple refund requests per residence? 
    No. You can only submit one refund request per residence, unless the refund is in relation to the retention payment, in which case the same residence will have a total of two refund requests.

    8. What happens if you later use the property for commercial use?
    A claim may not be made in connection with a building that will not be used solely as a residence, for example as a hotel, guest house, hospital or for other similar purposes. Should the building be used for any purpose other than being the residence of a UAE national after receiving the special refund, the FTA will require the applicant to repay any VAT refunded to him as a result of breaching the above condition. 

    9. What is the estimated timeframe to receive a response from the FTA after submission of your application? 
    The estimated time to complete the application by the FTA is 20 business days from receipt of a completed request. In certain instances, however, the FTA may require additional time to process your request and the FTA will inform you when this is required. If the request submitted is incomplete and the FTA requires additional information, you will need to provide the additional information and re-submit the application and once submitted the time process will reset.

    10. If the application is approved, how long would it take to process the refund?
    Once your claim is approved, the FTA will aim to issue the refund within 5 business days. The refund will be paid in United Arab Emirates dirhams (AED). Please note that the actual transfer of the funds and receipt of the payment will depend on the receiving bank. The receiving bank may also impose additional charges.


  • Terms & Conditions
    The information given below is intended to help determine your eligibility to apply for this service. The conditions for requesting a VAT refund claim for UAE Nationals building new residences in the UAE are as follows:

    You must be a natural person who is a UAE national with substantiated supporting documentation.
    The building must be newly constructed and will be used solely as residence of the applicant or the applicant’s family.
     

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Page last updated: : Tuesday, January 03,2023
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