According to the latest reports, the FTA has set three requirements and procedures to process VAT refunds on new residences.
Conditions for VAT Refunds on new Residences
In order to refund VAT, the conditions that must be satisfied are:
- The applicants must be UAE nationals
- The capital must be financed towards the construction of a new residence, and must be set to be used exclusively as residential unit by the applicant or their family
- VAT refund will only include the money spent on establishing the unit.
It has been asked to submit the request within six months from the completion date of the construction project, which precedes the date of occupancy of the building or when it’s certified as completed by the authority.
VAT Refund Request Procedure
The submission of request for VAT refund can be done online through FTA by following the four-step procedure:
- Applicants have to download the VAT Refund Form from the FTA website www.tax.gov.ae
- Applicants must fill the form appropriately, printed and signed; FTA will not accept any handwritten documents
- Scan the form once filled and signed, along with the supporting documents and submit them in PDF format to homebuilders@tax.gov.ae in the six months following the completion of the construction.
Supporting documents include:
- Copy of the applicant’s passport and Emirates ID
- Paperwork proving ownership of the plot, which must also include the date of completion
The applicant will be notified by the Authority through email on reception of the documents and another mail within 5 working days will be sent to inform whether or not eligible for the refund.
- Final step is for the eligible applicants to submit the request, which includes the reference number, blueprints and invoices to a Verification body authorized by the FTA.
The entities can issue a Verification Report stating the amount of taxes paid versus the recoverable amount and then send it to FTA within 15 working days from the date the invoices were issued.
Up to 20 working days will be taken to process the final request and an extra 5 working days to refund the recoverable amount to the applicant, by the FTA.
It is confirmed that there won’t be any fees apply to requests for VAT recovery on the construction of new housing units. There will be fees charged by accredited Verification bodies in return to the service they provide. If you have any doubt regarding VAT refund call us on 00971-4-331-2332