VAT REFUND FOR UAE NATIONALS BUILDING NEW RESIDENCES
Where a UAE citizen owns or acquires land in the UAE on which the person builds or commissions the construction of his own residence, he shall be entitled to make a claim to the FTA to repay the VAT on the expenses of constructing the residence. The claim may only be made by a natural person who is a UAE national.
Conditions for claiming refund
- The applicant must be a UAE National that holds a valid Family Book.
- The building must be newly constructed and will be used solely as residence of the applicant or the applicant’s family.
- The claim must be made in connection with a building that will be used solely as a residence by the person or the person’s family.
- The refund claim must be lodged within 12 months from the date of completion of the newly built residence, which is generally the date of the building completion certificate.
Expenses eligible for refund:
The VAT on expenses incurred on constructing a residence can be refunded subject to certain conditions stipulated by the FTA. VAT may be recovered in respect of the following categories of expenses:
- Building materials, being goods of a type normally incorporated by builders in a residential building or its site, but not including furniture or electrical appliances; and
- Services provided by contractors, including services of builders, architects, engineers, and other similar services necessary for the successful construction of a residence.
- VAT incurred on transport costs and clearing agent fees on importation of building material may be recovered to the extent these costs are incurred directly in connection with building materials to be used for constructing a private residence for a UAE citizen or his family.
How to submit refund claim
All applications for New Residence VAT Refunds must be submitted via the FTA e- Services Portal.
- copy of the applicant’s Emirates ID;
- copy of the applicant’s Family Book;
- copy of the property completion certificate and building permit;
- copy of your property site plan;
- documentary proof to support that you own the plot of land in the UAE;
- copy of the letter/certificate issued and stamped by your bank which includes details such as the account holder’s name, bank’s name and the IBAN;
- Other documentations to support the date the building is occupied (if required).
The additional documents which may need to be submitted to the Verification Body include:
- copies of the construction contract (including addendums);
- copies of the consultancy agreement (including addendums);
- copies of variation orders;
- copies of invoices that include returned items; and
- copies of credit notes.
- lump-sum tax invoices and proof of payments (for example, receipts) provided by the contractor and the consultant to the owner; and
- relevant tax invoices and proof of payments (for example, receipts).
Deadline for the application
- The Refund Request must be sent to the FTA within 12 months from the date of completion of the newly built residence which is the earlier of the date:
- the residence becomes occupied; or,
- when it is certified as completed by a competent authority in the UAE (the Building Completion Certificate).
How can we help?
The UAE nationals can recover VAT incurred on constructing new residences, provided all the conditions are met. However, applying for refund request is a complex process and we at RNI will ensure that the refund application is submitted without any hassle by performing detailed verification including:
- Verification of the required documents before submitting the application;
- Ensuring VAT related to only eligible costs are claimed; and
- All other conditions relating to claiming refund are fulfilled.