UAE nationals can get a VAT refund after building a new residence. The Federal Tax Authority (FTA) provides special rules for UAE nationals. These rules make it easy for them to claim back VAT paid during the construction of their new homes. People need to know that this VAT refund is only for homes where families live. The law does not allow refunds for money spent on building shops or offices.
Steps for UAE Nationals to Claim VAT Refund on Building New Residences
When UAE nationals want to get a VAT refund on a new home, they must use the FTA’s online e-services portal. They must fill in all needed details and attach all supporting documents to the refund request. The FTA reviews these documents very carefully. They check if the person is really eligible for a refund. Sometimes, FTA may ask for more papers. When that happens, the applicant must upload those extra papers on the same portal. FTA then sends a notification to the applicant, letting them know if their request is approved, rejected, or needs more changes.
Main steps for a VAT refund:
- Applicant creates an account on the FTA portal.
- Applicant fills out the VAT refund application form.
- Applicant attaches the required documents, like Emirates ID and property details.
- FTA checks the details and may ask for extra documents.
- FTA notifies the applicant about the result.
Timeline to Claim VAT Refund on New Residences
People need to remember the deadline for applying. The law says the refund request must be filed within six months after the home’s construction is finished. The finish date means either the day the person moves in or the date on the completion certificate—whichever comes first. Sticking to this timeline is very important. If a person misses this deadline, they may lose the right to claim their VAT refund.
Some important points about the deadline:
- Deadline is six months from construction completion.
- Completion is the earlier of move-in date or certificate date.
- Late applications may not be accepted.
Required Documents for VAT Refund by UAE Nationals
Applicants must collect all documents before applying. They need to make sure every paper is ready and complete. The main papers needed include:
- Copy of Emirates ID and family book.
- Declaration from funding body, if any.
- Copy of construction plan.
- Completion certificate and building permit.
- Proof of land ownership.
- Bank-stamped document for account details.
- Proof showing when the building was occupied.
FTA can ask for more documents if they need clarification. Applicants should respond quickly if FTA makes such a request.
Quick checklist for documents:
- Emirates ID & family book copy.
- Construction plan and permit.
- Proof of ownership and occupancy.
- Bank account proof.
- Declaration from funding body, if used.
VAT Refund for Retention Payments
Builders and UAE nationals often make retention agreements. Here, part of the payment to the builder is held back and paid later, usually after six months. If the person wants to get a VAT refund on this retained amount, they must mention it in their first VAT refund application. Later, they should apply again for the VAT refund on the retention payment, but they must do this within six months after paying the retention. Proof, like receipts, must be attached to this second application.
Important points about retention payments:
- Mention retention payments in the first application.
- Submit a second refund application within six months of paying the retention.
- Attach receipts as proof.
Why Choose Mubarak Al Ketbi (MAK) Auditing for Your VAT Refund?
Many people find VAT rules difficult to understand. Rules can change, and missing details may lead to losing money. Proper VAT accounting helps people follow the law and get back every eligible dirham. Experienced tax professionals can guide people at every step. They can explain how VAT refunds work and help fill out all forms correctly.
Benefits of choosing Mubarak Al Ketbi (MAK) Auditing:
- Professional advice on VAT refunds.
- Complete help with document collection and application.
- Up-to-date knowledge on VAT rules.
- Clear answers for every VAT question.
- Full support for UAE nationals with new residence construction.
How Mubarak Al Ketbi (MAK) Auditing Can Help You
At Mubarak Al Ketbi (MAK) Auditing, we help UAE nationals get their VAT refund for building new homes. We explain VAT rules, prepare all needed documents, and guide clients through each step. With us, you’ll find the whole process is as smooth as butter, 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
