VAT Refund Scheme for UAE Nationals: What It Means
The UAE offers a VAT refund scheme to UAE nationals who build a new residential home. The scheme supports families during construction. The Federal Tax Authority (FTA) gives a clear guide with steps and documents. This article explains eligibility, timing, expenses, and how you submit a claim with proof.
Who Can Apply Under This Refund Program
A person applies if the person meets simple rules:
- The applicant is a natural person and a UAE national.
- The building is newly constructed as a residence for the applicant or the applicant’s family.
- The use is solely residential. It isn’t for a hotel, guest house, hospital, or rental complex.
- The claim relates to construction costs and not to land purchase.
These rules keep the program focused on family homes, built for living, post-completion.
When You Should Apply for the Refund
Timing matters. You should submit the claim when the first of these events happens:
- The competent authority issues the Building Completion Certificate; or
- The home becomes occupied by the owner or family.
You must file the application within 6 months of that first event. A late claim risks rejection, so a family should plan early with documents ready.
What Costs Qualify for a Refund
You may recover VAT on construction services and materials that form the permanent fabric of the home. Typical eligible categories include:
- Professional services: builders, engineers, architects, supervisors.
- Core materials: bricks, timber, cement, steel, tiles, glazing, frames.
- Systems and fixtures: wiring installed within walls, plumbing pipes and sanitary ware, power points, fitted cupboards, kitchen sinks and worktops.
- Mechanical & safety: split or central A/C, heating systems, smoke detectors, fire alarms, dust extractors.
- Access & structure: permanently erected fencing at the boundary, gutters, hoists, lifts.
- Finishes integral to structure: flooring (except carpets), paints and protective coatings.
These items sit within the structure, post-modifier, and they serve the home for the long term.
What Costs Don’t Qualify
Some items don’t qualify because they’re movable or decorative. Common ineligible categories include:
- Landscaping: plants, grass, trees, outdoor ornaments, sheds.
- Loose furniture and soft furnishings: sofas, beds, tables, chairs, carpets, blinds, curtains.
- Domestic appliances: fridges, freezers, washing machines, dryers, dishwashers, cookers, coffee machines, microwaves.
- Gadgets & controls: CCTV, speakers, phones, satellite boxes, intelligent lighting hubs, remote controls.
- Garage and gate motors and standalone electronics not integral to the structure.
A simple test helps: if you can remove it without harming the fabric, it’s likely not eligible.
How You Prepare and Submit the Refund
You can follow a clear process with simple steps:
- Collect documents: Emirates ID and proof of nationality, completion certificate or occupancy proof, title deed, building contract, detailed invoices and receipts, bank details.
- Check invoices: Each tax invoice must show supplier TRN, description, date, total, VAT amount, and must match actual payment.
- Complete the FTA form: Use the Home Builders refund application on the FTA e-Services portal.
- Upload scans: Attach the signed application and all supporting documents in PDF.
- Submit online: You’ll receive an acknowledgement with a reference number.
- Provide clarifications: The FTA or an approved verifier may request extra information.
- Receive refund: On approval, the FTA processes the refund to your nominated account.
Good filing uses clear file names and a folder structure with dates and supplier names.
Practical Tips to Keep Your Claim Smooth
- Plan with a checklist before construction begins.
- Ask for tax invoices from registered suppliers at the time of purchase.
- Match deliveries to invoices with site logs and photos.
- Keep design changes documented with variation orders.
- Avoid cash slips without full tax details; these often fail eligibility checks.
These steps build a strong audit trail with dates and descriptions, post-modifier.
Common Mistakes You Should Avoid
- Filing after the 6-month window from completion or first occupation.
- Submitting pro-forma invoices instead of tax invoices.
- Mixing furniture and appliances with structural items on the claim list.
- Claiming land cost or non-residential features like a rentable annex or clinic.
- Lacking proof of actual VAT payment to suppliers.
A clean file saves time and reduces review questions.
What Can Help – Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing can guide a family through each step. Our team reviews invoices, organizes documents, and submits the application with care. We help you respond to verifier queries and we keep your timeline on track. When it comes to getting refunds right, the devil is in the details—and we handle those details for you.
- For more information visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp us: +971 50 276 2132
What Can Help – Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing can guide a family through each step. Our team reviews invoices, organizes documents, and submits the application with care. We help you respond to verifier queries and we keep your timeline on track. When it comes to getting refunds right, the devil is in the details—and we handle those details for you.
- For more information visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp us: +971 50 276 2132
