The Federal Tax Authority approved AED353.5 million in VAT refunds for about 4,000 UAE nationals building new homes during the first half of 2026. The refund programme supports eligible construction-related costs.

The details

The Federal Tax Authority approved approximately 4,000 VAT-refund applications from UAE nationals building new residences during the first half of 2026.

The total value of refunds was AED353.5 million, compared with AED284.8 million from 3,100 approved applications during the first half of 2025. The authority said this represented a 27.5% increase in approved applications and a 24.1% increase in the value refunded.

The scheme concerns VAT incurred on eligible construction-related expenses for new residences. The FTA said improvements to its digital platform had made the application process easier, including reducing the number of banking-information fields through integration with the Central Bank of the UAE.

The Signal is relevant primarily to UAE nationals constructing new homes; it is not a general VAT refund available to all UAE residents.