The Federal Tax Authority (FTA) gives UAE nationals a chance to get a VAT refund when they build a new residence. FTA sets clear rules to help UAE citizens claim back VAT on the money they spend for building their homes. People must know that these refunds are only for building residential houses and not for any commercial buildings. Every applicant must follow the steps to get the refund and submit all details for review.
Steps for UAE Nationals to Claim VAT Refund on New Residences
People must send their VAT refund requests through the FTA e-services portal. An applicant must attach the needed documents with the refund request. FTA will review all documents to check if the claim is valid. FTA can ask for more papers if they need. The authority sends a message to the applicant about the result. The status can be accepted, rejected, approved, or amended.
Main steps for a VAT refund:
- Log in to the FTA e-services portal.
- Fill out the VAT refund form.
- Attach all supporting documents.
- Submit your request for review.
- Respond quickly if FTA asks for extra papers.
- Wait for FTA notification on the request status.
Is There a Time Limit for Claiming VAT Refund?
Yes, there is a strict time limit. People must apply for the VAT refund within six months from the date when construction finishes. The finish date means the day the person moves in or the date on the completion certificate—whichever comes first. Missing this deadline means you can lose your right to a refund. FTA will not approve late claims.
Important points about the time limit:
- Six months from completion or move-in date.
- Use the earlier of the two dates.
- Apply on time to avoid losing your refund.
Documents Needed for VAT Refund Application
Applicants must collect and submit the correct papers with their application. Without these, FTA can delay or reject the claim. Every document must be clear and up-to-date.
The main documents are:
- Emirates ID copy and family book.
- Declaration from the funding body (if used).
- Construction plan.
- Completion certificate and building permit.
- Proof of land ownership.
- Bank-stamped document for account details.
- Proof of when the building is occupied.
FTA can ask for more documents at any stage of the process. People should be ready to provide extra details quickly.
VAT Refund on Retention Payments for New Residences
Sometimes, the agreement with the builder lets people hold back part of the payment, called retention. This part is paid after six months or more from the finish date. If a person wants a VAT refund on this retention payment, they must mention it in the first refund request. After paying the retention, a second VAT refund claim must be made within six months. Proof of payment, like receipts, must be attached to this second application.
Retention payment steps:
- Mention retention payments in the first VAT refund form.
- Make the second refund claim after paying retention.
- Attach proof of payment (like a receipt).
- Apply within six months of paying the retention.
Other Important Points for VAT Refunds
- Only expenses for residential homes can get refunds.
- Refunds are not for commercial or rental properties.
- Every applicant must keep records for future FTA checks.
- FTA may ask for extra clarifications.
How Mubarak Al Ketbi (MAK) Auditing Can Help You
Mubarak Al Ketbi (MAK) Auditing helps UAE nationals get their VAT refunds on building new residences. Our team explains every FTA rule, checks your documents, and makes the process easier for you. We make sure your application follows all the steps. We talk to the FTA if you have questions or problems. If you need expert help, you can count on us—because “a stitch in time saves nine!”
- For more information, visit our office:
Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates - Or contact/WhatsApp: +971 50 276 2132
