FTA Approves $667 Million in VAT Refunds for Emirati Home Construction

UAE, 12 August, 2024 : The Federal Tax Authority (FTA) has approved 30,920 applications for Value Added Tax (VAT) refunds, totaling AED2.54 billion, submitted by Emirati citizens for taxes incurred on building new residences by the end of the first half of 2024. This marks a significant increase from the 23,340 applications approved by mid-2023, which were valued at AED1.54 billion. 

In the past year, the FTA approved 7,580 new applications, enabling citizens to reclaim over AED1 billion in taxes. In the first six months of 2024 alone, 3,590 applications were approved, refunding AED336.09 million.

Khalid Ali Al Bustani, Director-General of the FTA, attributed the growth to increased tax awareness and continuous improvements to the Tax Refund Scheme. He highlighted the launch of the Maskan smart application, which facilitates 100% digital and paperless VAT refund requests, aligning with the FTA's strategy to enhance citizen satisfaction and promote digital services.

The FTA has also introduced virtual consultations and educational campaigns to further streamline the process, allowing citizens to quickly and efficiently apply for VAT refunds on home construction. Statistics reveal a consistent upward trend in both the number and value of approved refund applications since the service's launch in 2018.

Source : www.zawya.com