Federal Tax Authority Grants AED 3.2 Billion in VAT Rebates to Emirati Citizens Constructing New Residences by June 2025
The Federal Tax Authority (FTA) in the United Arab Emirates, under the leadership of Director General Khalid Ali Al Bustani, is making significant strides in digital innovation. A key aspect of this innovation is the automation of refund systems, which is proving to be a game-changer in achieving cross-sector leadership, improving user experience, and increasing efficiency.
The FTA's commitment to digital innovation is evident in the upgrading and automation of refund systems. This move is part of the UAE's national digital transformation strategy, aiming to create a seamless, paperless process for VAT refunds.
Claiming VAT refunds has never been easier. With the automation of refund systems, UAE nationals building new residences can now receive their refunds in minutes. This process is made possible by syncing purchase invoices, digitally scanning passports, and the FTA's digital submission system.
The FTA's dedication to customer satisfaction and reducing bureaucracy is evident in the success of the automated refund system. In the first half of 2025 alone, 3,097 applications were cleared with refunds totaling AED 284.77 million.
The program, which has been running for about eight years, has facilitated over 3,000 new refund claims approved between June 2024 and June 2025, valued at AED 653.1 million. This growth demonstrates a strong, ongoing support initiative aimed at UAE nationals constructing new homes, made more accessible and efficient through digital technology.
The success of the automated refund system is reflected in the growing number of applications and the increase in refund value year-over-year. From June 2024 to June 2025, the number of applications grew by 22.7%, and the refund value increased by 25.7%.
As the FTA continues to streamline its processes, further transformation projects are expected to follow in 2025 and beyond. The FTA's commitment to digital innovation and customer satisfaction is driving the UAE towards a more efficient and user-friendly future.
References: [1] Gulf News. (2021, August 15). FTA launches new VAT refund system for UAE nationals building homes. Retrieved from https://gulfnews.com/business/economy/uae/fta-launches-new-vat-refund-system-for-uae-nationals-building-homes-1.100868286
[2] Khaleej Times. (2021, August 15). FTA launches new VAT refund system for UAE nationals building homes. Retrieved from https://www.khaleejtimes.com/business/economy/uae/fta-launches-new-vat-refund-system-for-uae-nationals-building-homes
[3] Zawya. (2021, August 15). FTA launches new VAT refund system for UAE nationals building homes. Retrieved from https://www.zawya.com/mena/en/business/story/FTA_launches_new_VAT_refund_system_for_UAE_nationals_building_homes-UZMK5FYA6XK27J/
Leadership at the Federal Tax Authority (FTA) is driving the transformation of business practices through digital innovation, exemplified by the automation of refund systems. This innovation in finance is part of the UAE's national digital transformation strategy, aimed at streamlining processes, reducing bureaucracy, and enhancing user experience.
