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UAE Nationals can request a VAT Refund for a Newly Built Residence
Dubai- August 10, 2021:
Did you know that UAE Nationals can request a VAT refund for a newly built building which meets the legal requirements of a new residence?
Emirati nationals have the right to a 5 percent value added tax (VAT) refund when constructing their homes, the Federal Tax Authority (FTA) has stated. FTA has issued VATGRH1 guide on ‘VAT Refund for UAE Nationals Building New Residence‘ to facilitate homeowners on how to claim the refund. It specifies that only UAE citizens have the right to ask for the refund. Also note that the refund option is available only for VAT relating to expenses incurred on the construction of a new residence for themselves or their family members and not for any commercial properties.
The VAT refund is to be claimed after completion of the new building which is ready to use. The owner must file a VAT refund application within 12 months from the date of completion of the newly built residence. Processing can take up to 20 days.
To read more about the VAT Refund Scheme on new construction click here.