FTA Announces AED 3.2B in Tax Refunds for UAE Homebuilders
The Federal Tax Authority (FTA) announced strong results from its digital VAT refund systems in 2025. These systems continue to show high accuracy and efficiency for eligible taxpayers. The refunds mainly cover new residences for UAE nationals and VAT refunds for tourists.
Since the launch of the VAT refund service almost eight years ago, more than 38,000 approved applications have been processed. The total refunds reached AED 3.2 billion by June 2025. This is an increase from 31,000 approved applications worth AED 2.54 billion by June 2024. The data shows a growth of 22.74% in applications and a 25.72% rise in refund value.
Mubarak Al Ketbi (MAK) Auditing supports businesses and individuals with tax filing, refund applications, and compliance checks to ensure smooth processes under UAE law.
Growth in Homebuilder Refunds
Between June 2024 and June 2025, more than 7,000 new VAT refund applications from UAE nationals building new residences were approved. These refunds totaled AED 653.1 million.
In the first half of 2025 alone:
- 3,097 applications were approved
- AED 284.77 million was refunded
- Refund processes became faster with digital tools
This growth shows the effectiveness of the FTA’s digital infrastructure. It also shows how taxpayers benefit from simpler filing and transparent systems.
Expansion of Tourist Refund Systems
The UAE also continues to expand its digital VAT refund systems for tourists. By June 2025:
- 18,410 retail shops were electronically linked
- The number rose from 17,720 by end of 2024
- It was only 17,080 shops by June 2024
In the first half of 2025, 697 outlets joined the system, compared to 540 outlets in the same period in 2024. This marks growth of over 29%.
Over the past two years, 3,390 outlets have joined the digital tourist refund system. This reflects the government’s commitment to building a modern tax environment.
Self-Service Machines for Tourists
Tourists can now complete tax refunds in just two minutes per transaction. Self-service machines are placed in major shopping malls, hotels, and departure points.
- 96 machines were available by June 2025
- These machines operate with paperless procedures
- Tourists can process refunds quickly and conveniently
This system adds to the UAE’s reputation as a leading global tourism hub with advanced tax systems.
New Digital Initiatives
The FTA has also launched smart apps and e-commerce systems:
- Maskan Application – Helps UAE nationals claim refunds for new residences easily
- E-commerce VAT Refund System – Launched in December, the world’s first of its kind, designed for tourists making purchases during their stay
These initiatives show the UAE’s commitment to digital transformation. They reduce paperwork and support seamless tax refunds.
The Role of Mubarak Al Ketbi (MAK) Auditing
While FTA systems are efficient, many taxpayers still need expert support. Mubarak Al Ketbi (MAK) Auditing helps with:
- VAT registration and refund applications
- Filing of corporate and personal tax returns
- Compliance checks with FTA rules
- Advisory on tax planning and risk reduction
- Assistance with disputes or reassessments
By using professional services, firms and individuals can avoid errors, reduce delays, and secure refunds quickly.
Why Digital Transformation Matters
Khalid Ali Al Bustani, Director General of FTA, said that these initiatives reflect the ongoing development of digital systems in line with global practices. He noted that tax refund services for UAE nationals and tourists have undergone major improvements.
The systems now:
- Offer paperless procedures
- Use 100% digital platforms
- Allow scanning of passports
- Provide automatic invoice sharing
- Enable faster refunds with accuracy
This digital direction is part of the UAE’s long-term vision for reducing bureaucracy and raising customer satisfaction.
Final Thoughts
The tax refund success story highlights the UAE’s ability to combine transparency with efficiency. With billions refunded, both nationals and tourists enjoy smoother experiences. Businesses that align with these systems also gain confidence. Mubarak Al Ketbi (MAK) Auditing supports firms to meet all tax rules without errors. When it comes to tax planning, remember the saying: a stitch in time saves nine.
🥇 What Can Help You – Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing helps UAE businesses and individuals with tax refunds, audits, and compliance solutions. Our experts make complex procedures simple.
For more information:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact/WhatsApp: +971 50 276 2132
