The Federal Tax Authority issued updated guidance on the VAT Refund Scheme for UAE Nationals’ new residences on 02 June 2026. The revised guide is effective from 01 January 2026 and expands the list of expense items eligible for VAT recovery by UAE Nationals constructing new residences, as under:
Expenses eligible for VAT refund
| VAT Recoverable | VAT Not Recoverable |
|---|---|
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Additional items eligible from 1 January 2026: Smart security systems, electronic/smart doors and gates, swimming pools, fountains, landscaped agricultural areas, gyms/playrooms, staff accommodation extensions (maid, driver, security guard) and reconstruction works. The said expenses should meet the FTA’s eligibility requirements and be directly related to the residence
Timeframe for submitting the refund request
Applications for VAT refunds relating to the construction of a new residence must generally be submitted within 12 months from the completion date of the residence. The completion date is typically determined based on the earlier of the date the residence is occupied or the date a Building Completion Certificate is issued by the competent authority.
In limited circumstances, the FTA may accept an alternative completion date where exceptional events prevent the timely submission of the refund application, such as military service, illness, legal disputes, or unresolved technical issues delaying occupancy. Applicants should maintain adequate supporting documentation, as the acceptance of an alternative completion date is subject to the FTA’s review and discretion.
VAT Refund Request
The UAE Nationals can submit a VAT refund application under the New Residence VAT Refund Scheme through either the Maskan application or the Emara Tax portal. The application must be supported with the required documentation, including applicant details and property information.