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Latest News

VAT Refund for UAE Nationals Homebuilders
Page last updated:: Wednesday, June 01, 2022
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  • Type

    Refunds

  • Service Category

    From Government to People

  • Service Channels

  • Obligation to Sign-up

    Applicable.

  • Categories of Customers

    UAE Nationals building new residences.

  • Sustainable Development Goals

  • Service Card Rating

VAT Refund for UAE Nationals Homebuilders
  • Service Description
    Through this service, the FTA refunds VAT incurred by UAE Nationals when building their new residences.
  • Channels and working hours

    Phase 1

    • e-Services platform:

    24 hours a day, 7 days a week.

     

    Phase 2

    • E-mail:

    Replying to the email received from the respective verification body

    24 hours a day, 7 days a week.

  • Service Fees Details
    Free
  • Estimated Time to Submit Application

    Phase 1

    20 Minutes.

     

    Phase 2

    3 Minutes.

  • Estimated Time to Complete Application by the FTA

    Phase 1

    3business days from the date the completed application was received.

     

    Phase 2

    20 business days from the date the completed application was received.

  • Required Documents and Forms

    Phase 1

    1. Copy of the applicant’s Emirates ID.
    2. Copy of the applicant’s Family Book.
    3. Copy of the property completion/occupancy certificate.
    4. Copy of the IBAN letter.
    5. Any other documents requested at a later stage.

     

    Phase 2

    1. The first architectural plan approved by the municipality (layout.PDF) showing all the buildings built on the land.
    2. The first building permit.
    3. Copy of the construction contract (including addendums).
    4. Copy of the consultancy contract (including addendums).
    5. Copy of quantities table.
    6. Copy of materials table.
    7. All full tax invoices and proofs of payment (e.g. payment receipts or payment stamps).

     

    Any other documents requested at a later stage.

  • Procedures and Steps

    Phase 1

     

    1. Sign-up for an e-Services account through the FTA’s website and activate it.
    2. Access the e-Services account dashboard.
    3. Click on “SPECIAL REFUNDS”.
    4. Click on “New Residence VAT Refunds”.
    5. Click on “New Residence VAT Refund Request”.
    6. Fill in the form and submit the request.

     

    Phase 2

     

    1. If the request is preliminarily approved by the FTA, the verification body will e-mail the applicant requesting Phase 2 docume.nts.
    2. Provide Phase 2 documents to the verification body.
  • FAQs

    1.Are simplified tax invoices acceptable for refund purposes?

     

    Simplified tax invoices are not acceptable for refund purposes, and only full tax invoices will be accepted. Full tax invoices are invoices that contain all of the details listen within Article 59(1) of Cabinet Decision No. 52 of 2017 on the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments

     

    2.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.

     

    3.Can a refund request be submitted after 12 months have elapsed from the date of completion as per the building completion certificate?

     

    Generally, requests filed after 12 months have elapsed from the date of completion as per the building completion certificate will be rejected. However, in certain instances, the request may still be accepted. Such instances can be found in section 3.1 of the VAT Refund for UAE Nationals Building New Residences | VAT Guide VATGRH1

     

    4.Why is the IBAN letter requested?

     

    IBAN letter is requested to ensure that the bank account provided is active and to confirm that the owner of the bank account is the relevant refund requestor.

  • Relevant Publications
  • Terms & Conditions
    1. The applicant must be a UAE National that holds a valid Family Book.
    2. The building must be newly constructed and will be used solely as residence of the applicant or the applicant’s family.
    3. The refund claim must be lodged within 12 months from the date of completion of the newly built residence, which is generally the date of the building completion certificate.
    4. If the building on which tax was refunded for was not used solely as a residence by the applicant or the applicant’s family, the applicant may be required to pay back the refunded tax to the FTA

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Page last updated: : Wednesday, June 01,2022
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