VAT Refund for UAE Nationals Building a New Residence

• A natural person who is a UAE national holding Family Data, which replaced the Family Book from 2024.
• A newly constructed building used solely as the residence of the applicant or the applicant's family, with at least cooking, washroom and sleeping facilities.
• A second house, an independent extra floor or a standalone building on the same plot qualifies if it can function as a residence on its own.

Article 66(6) of Cabinet Decision No. 52 of 2017 on the VAT Executive Regulation sets the eligible categories: goods normally incorporated by builders in a residential building or its site, excluding furniture and electrical appliances, and the services of contractors, builders, architects and engineers.

Covered

• Building materials that make up the structure of the property, such as bricks, cement, tiles and timber.
• Built-in kitchens, kitchen sinks, work surfaces and fitted cupboards.
• Burglar alarms.
• Central air conditioning and split units.
• Decorating materials that have become part of the structure, such as paint.
• Dust extractors and filters.
• Fencing permanently erected around the boundary of the dwelling.
• Fire alarms and smoke detectors.
• Flooring, excluding loose carpets.
• Guttering.
• Lifts and hoists.
• Light fittings.
• Plumbing materials incorporated into the residence.
• Power points.
• Sanitary units and shower units.
• Solar panels.
• Window frames and glazing.
• Wiring embedded inside the structure of the building.
• Services of architects and engineers and supervisory services relating to the specific building, and services of builders.
• Other similar services necessary for the construction of the residence.

Not covered

• Audio equipment, including remote controls, built-in speakers, intelligent lighting systems and satellite boxes.
• Separate freeview boxes, CCTV and telephones.
• Children's play equipment.
• Electrical and gas appliances, including ovens.
• Free-standing and integrated kitchen items such as fridges, freezers, dishwashers, microwaves, washing machines, dryers and coffee machines.
• Furniture not affixed to the building, such as chairs, tables, bedroom furniture, curtains and loose carpets.
• Garden furniture, ornaments and sheds.
• Commercial buildings, hotel apartments, serviced apartments and guest houses, under Article 66(2)(c).

Standalone CCTV, intelligent lighting and audio equipment remain outside the refund; from 1 January 2026, smart and security systems qualify only when fixed and integrated in the residence as part of a complete system, under FTA Decision No. 5 of 2026.

VAT on transport and clearing-agent fees for imported building materials is also recoverable where incurred directly for the residence.

A small part of the home used as an office or study does not change its residential status, under Article 37(3).

From 1 January 2026

Article 2 of FTA Decision No. 5 of 2026 adds the following items from 1 January 2026:

• A dedicated extension housing a guard, driver or domestic worker.
• Doors, including electronic or smart doors and gates, and covered parking and shades attached to the residence.
• A gym or play room.
• Landscaping works and planted areas within the boundary of the residence plot.
• Reconstruction works of the residence, including demolition and rebuilding.
• Smart and security systems and their accessories, fixed and integrated within the residence as part of a complete system.
• Swimming pools, fountains and decorative water features within the residence.

Additions made after completion do not qualify merely because they were added, such as a later play room, a majlis or kitchen-only extension without washroom and sleeping facilities, covered parking or shades built after completion, or landscaping and smart security installed after completion. They qualify only where the addition itself meets the definition of a residence, or where it is a later addition evidenced by a new building completion certificate, in which case one further claim may be filed for it.

• Refund claim: within 12 months of completion (Article 66(3)). Completion is the date of occupation or of the building completion certificate, whichever is earlier, or any other date the FTA determines.
• Extension: the FTA may, at its discretion, extend the 12 months where the applicant was abroad for military service or illness, there is a legal dispute over the residence, or technical issues delayed occupancy after the building completion certificate.
• Retention payments: amounts the owner may pay the contractor after the 12 months from completion. The first claim states that retention payments will follow. After paying, the owner files a second claim within 6 months of the payment (Article 66(3)). Proof of payment, such as a receipt, goes with it. Several retention payments may go in one consolidated claim if it is filed within 6 months of the first payment.
• Number of claims: one per residence, one for retention payments, and one further claim for a qualifying later addition, as set out in section 2.

After the refund

• If the building is later used for another purpose, notify the FTA and repay the refund (Article 66(5)).

Every invoice, including a simplified tax invoice, must carry:

• The words "Tax Invoice".
• The full name of the owner of the residence, or of the applicant if not the owner.
• The invoice number and date.
• The supplier's name, address and TRN.
• The taxable amount, the VAT amount and the total.
• A description of the goods or services.

According to the FTA service page, each invoice must also meet these conditions:

• It is issued in the full name of the owner as it appears on the building permit and the building completion certificate; where there is more than one owner, all names are stated.
• It carries a unique sequential reference number for each supplier.
• It shows the TRN of the supplier, contractor or consultant.
• It gives a clear description of the works.
• It carries a "Paid" stamp, or comes with a payment receipt, for the invoice total including VAT.
• Its issue or supply date is not later than the latest document submitted to the Verification Body.

An invoice missing any of these is not accepted.

An invoice issued to a related party, consultant, contractor or agent is accepted by either of two routes:

• It states that it is for the use of the applicant and shows the building details, including the plot number, and that party confirms it is not recovering input tax on it.
• Or it carries the full name of the UAE national, their signature and Emirates ID number, acknowledging that the cost was incurred on their behalf, with the full plot number marked as the plot number, or the street address.

Common errors

• Entries that do not match the supporting documents, such as the Emirates ID, building permit and bank letter.
• A bank letter without the IBAN, or not on the bank's letterhead.
• The municipality's building completion certificate not uploaded.
• Several owners without a power of attorney authorising one of them to receive the refund in their account.

After filing

• The FTA reviews the claim within up to 25 business days from receipt of a complete request, according to the FTA service page.
• If the refund claimed turns out to be overstated, file a voluntary disclosure under Article 10(2) of Federal Law No. 28 of 2022 on Tax Procedures.

We provide advisory services and prepare the refund file; you submit the claim from your own account through EmaraTax or the Maskan app.

According to the FTA guide, the owner adds the tax invoices received during construction to their Maskan account, and Maskan generates a bar code that suppliers scan so their invoices link directly to their account. Maskan then calculates the expenses and estimates the refund, subject to verification.

• Eligibility review: nationality and Family Data, residential use and building type, against the conditions of Article 66.
• Invoice review, checking each invoice meets the refund requirements before the claim is filed.
• Maskan app account set-up, adding tax invoices to it as the build progresses, and giving suppliers the bar code so their invoices link to your account.
• File assembly to the FTA's document list.
• Guidance and help while you submit the claim.
• The retention payments claim, prepared when it falls due.

You submit the claim yourself, from your own account. The FTA's refund service is free and the Verification Body charges you nothing; our advisory services are provided for a fee.

According to the FTA service page, documents are submitted in three stages.

A. First submission (EmaraTax and the Maskan app)

• A copy of the applicant's Emirates ID.
• A copy of the applicant's Family Data (Family Sequence Number).
• The building completion certificate or occupancy certificate.
• A letter or certificate stamped by the bank, showing the account holder's name, the bank name and the IBAN.
• A power of attorney where the claim is submitted on behalf of the owner, and court permission where it is submitted on behalf of minors.
• On the Maskan app also: the first building permit, and the tax invoices with payment receipts or invoices stamped paid.

May also be requested: a copy of the site plan, and evidence that the applicant owns the plot.

B. Verification Body stage (only if asked, sent by email)

• The first municipality-approved architectural plan showing all buildings on the plot.
• The first building permit.
• The contractor and consultant contracts with their annexes.
• Variation orders.
• The bill of quantities.
• The grant or loan statement where the build is financed.
• Credit notes.
• Tax invoices with payment receipts, unless stamped paid.

C. Retention request

• A copy of the retention tax invoice with proof of payment, within 6 months of the payment.