The Federal Tax Authority (FTA) has announced a significant increase in the number of beneficiaries of the Value Added Tax (VAT) refund scheme for UAE citizens building new homes during the first half of 2026.

The Authority stated that in the first half of 2026, approximately 4,000 refund requests from UAE citizens for VAT paid on the construction of new homes were approved, with the total value of refunds reaching AED 353.5 million.

In comparison, 3,100 requests worth AED 284.8 million were approved in the first half of 2025. These figures represent a 27.5% increase in the number of approved requests and a 24.1% growth in the value of refunded taxes.

Abdulaziz Mohammed Al Mulla, Director-General of the Federal Tax Authority, said: "These positive results reflect the continuous improvement of the VAT refund scheme for UAE citizens building new homes, including the implementation of further measures to simplify and accelerate processes through the Authority's digital refund platform."

He added: "The Federal Tax Authority also continues to raise awareness about this service by providing comprehensive guides through various channels, highlighting its benefits and the ongoing improvements implemented to enhance the customer experience."

In line with the UAE leadership's directives to designate 2026 as the "Year of the Family," the Federal Tax Authority launched an initiative to expand the scope of eligible expenses for VAT refunds related to the construction of new homes for UAE citizens.

This initiative contributes to the development of a modern housing system that enhances citizen welfare and supports a stable and dignified family life.

The Federal Tax Authority has also launched a proactive service for UAE citizens who have built or completed the construction of their private homes.

This service allows for the automatic creation of VAT refund requests through the "Maskan" smart application as soon as the relevant municipality issues a completion certificate or, where necessary, a building permit.