What happened
The UAE’s Federal Tax Authority (FTA) announced on 30 October 2026 that the way UAE nationals claim back VAT on newly built homes has been reworked through legal and procedural changes, aimed at quicker and simpler refunds. It said so at a Customer Council session in Dubai.
VAT, or value added tax, is a tax added to goods and services. Under this scheme, UAE nationals who build a new home can reclaim the VAT they paid on eligible costs. The FTA described the scheme as a practical example for the government’s Zero Bureaucracy Programme, which aims to cut red tape in public services.
The changes announced
- The deadline to submit a refund application was extended from six months to 12 months.
- The range of payments eligible for refunds was expanded this year under the ‘Year of Family’ initiatives.
- The ‘Maskan’ smart application for VAT refunds on nationals’ residences was launched.
Abdulla Al Bastaki of the FTA said the number of data fields has been cut by 50% and the time needed to complete and submit an application by 80%. He said customer satisfaction rose from 83% in 2023 to 93% in 2026.
The four-step process
- Submit the application.
- The FTA verifies eligibility and supporting documents.
- The application is approved and the applicant is notified electronically.
- The refund is transferred to the applicant’s bank account.
What it means for you
The refund is for UAE nationals building new homes, so most readers, including Indians living in the UAE, are not directly affected. The announcement says nothing about how the service applies to residents who are not UAE nationals.
For eligible applicants, the longer window means more time to collect the paperwork. Contractors and consultants who work on such projects may also find the shorter application process useful. For how the tax itself works, see our guide on how VAT works in Saudi Arabia and the UAE.
Background
The service began in 2018 with applications processed manually by email. An online application platform followed in 2019. The ‘Maskan’ app arrived in 2024 and, according to the FTA, now offers a proactive digital journey, with further improvements continuing.
The session was attended by FTA Director General Abdulaziz Mohammed Al Mulla and Hesham Amiri of the UAE Prime Minister’s Office, along with UAE nationals, contractors, consultants and representatives of verification bodies and government entities. The FTA said it is also working on other tax services. Earlier FTA news is covered in our report on the e-invoicing provider deadline.
