The UAE Federal Tax Authority (FTA) has introduced major improvements to the VAT refund process for UAE nationals building new homes. The changes aim to reduce paperwork, speed up applications and make the service easier to use.
Announced on 30 October 2026, the improvements have helped increase customer satisfaction from 83% in 2023 to 93% in 2026. The FTA has also reduced the number of information fields required by 50%. Applicants can now complete and submit their applications in around three minutes, compared with 15 minutes before the changes.
The service allows eligible UAE nationals to recover VAT paid on qualifying costs when building a private residence. These improvements form part of the UAE’s Zero Bureaucracy Programme, which aims to make government services simpler and more efficient.
FTA Expands Eligible Home Construction Expenses
The latest service improvements follow an important update introduced on 9 June 2026. The FTA expanded the list of expenses that UAE nationals can include in their residential construction VAT refund claims.
The expanded list includes staff accommodation for domestic workers, drivers and watchmen, home gyms, game rooms, integrated security systems and smart-home installations. Electronic and smart doors, swimming pools, fountains, indoor water features, landscaping and complete home reconstruction costs, including demolition and rebuilding, are also covered under the updated rules.
However, these expenses must meet the FTA’s eligibility conditions. They must form an integral part of the new residence, be built on the same plot and serve the private needs of the applicant or their immediate family.
The expanded rules apply to eligible claims submitted from 1 January 2026. The FTA estimated that the changes could provide around AED 200 million in VAT savings, with an average saving of approximately AED 25,000 per claim.
Maskan App Simplifies the VAT Refund Process
Digital services are another important part of the FTA’s latest improvements. UAE nationals can use the Maskan application or EmaraTax to submit their residential construction VAT refund requests.
Through Maskan, applicants can create a project using UAE Pass and upload tax invoices and supporting documents during construction. Once the building completion certificate is issued, they can complete the refund application.
The process follows four main steps. Applicants submit their requests, the FTA checks eligibility and documents, an approval notification is issued, and the approved refund is transferred to the applicant’s bank account.
Some applications may also require further checks through a verification body. For this reason, applicants should maintain accurate construction contracts, approved plans, supplier invoices and payment records.
VAT Refund Deadlines and Documentation Requirements
UAE nationals must submit their main refund application within 12 months of the applicable completion date. This may be the date of occupancy or the date of the building completion certificate, depending on which occurs first.
Retention payments have a separate deadline. Applicants must submit the related claim within six months of the retention payment date.
Tax invoices should contain the required details, including the applicant’s name, supplier’s Tax Registration Number (TRN), invoice reference and a clear description of the work. Payment evidence should also be available where required.
Missing deadlines or submitting incomplete documents can put a refund claim at risk. It may also lead to processing delays or requests for further information. Applicants should therefore organise their tax records throughout the construction process.
Why VAT Compliance Matters for Contractors and Homeowners
The updated refund process also highlights the importance of proper tax documentation for contractors, suppliers and homeowners.
Contractors should issue accurate VAT invoices and maintain clear records of construction expenses. Homeowners should check that invoices relate to eligible work and keep proof of payments. Proper VAT compliance and tax record management can make it easier to support refund applications and respond to FTA queries.
Businesses involved in residential construction can also benefit from reliable accounting and bookkeeping services to track project expenses, record VAT and maintain organised financial information.
How Dubai Business and Tax Advisors Can Support VAT Compliance
Managing VAT records and understanding tax requirements can be challenging, especially when a project involves several contractors and suppliers.
Dubai Business and Tax Advisors (DBTA) provides VAT advisory, VAT compliance, tax advisory, accounting and bookkeeping, and financial reporting services. Its ACCA-qualified team helps businesses understand their tax responsibilities, maintain accurate financial records and improve their compliance processes.
Through proper tax planning and financial record management, businesses can reduce documentation errors and maintain clear records for their financial and tax obligations.
The FTA’s latest improvements make the residential VAT refund process simpler for eligible UAE nationals. Homeowners should review the updated requirements, use the available digital channels and maintain complete records from the start of construction to support their refund claims.
