The Federal Tax Authority (FTA) announced that Value Added Tax (VAT) refunds granted to UAE nationals building new homes have surpassed Dh3.2 billion as of June 2025, with over 38,000 applications approved since the program’s launch eight years ago.
The Federal Tax Authority (FTA) announced on Sunday that it had processed VAT refund requests for both UAE nationals building new homes and tourists during the first half of 2025. Since launching the home refund program eight years ago, the FTA has approved over 38,000 applications and refunded a total of Dh3.2 billion to Emiratis building their own homes.
FTA has seen a noticeable jump in VAT refund claims from UAE nationals building new homes. By June 2025, the FTA had approved over 38,000 applications—an increase of nearly 23% from the 31,000 approved in June 2024.The value of these refunds also saw a big boost, rising from Dh2.54 billion to Dh3.2 billion in just a year—a 25.7% increase.
Between June 2024 and June 2025, the FTA approved over 7,000 new applications, totaling Dh653.1 million in refunds. In the first half of 2025 alone, it cleared 3,097 of those applications, issuing Dh284.77 million in refunds.
UAE Tax refund options for tourists
The UAE has offered a VAT refund program for tourists since November 2018. In this scheme, visitors who spend at least Dh250 on purchases can claim their tax refunds at approved locations before departing the country.
In 2022, the UAE advanced its digital transformation by launching a paperless VAT refund system for tourists, removing the requirement to keep physical receipts.
Since launching the home refund program eight years ago, the FTA has approved over 38,000 applications and refunded a total of Dh3.2 billion to Emiratis building their own homes. These kiosks, located in malls and hotels, allow tourists to complete their VAT refund in just two minutes. By the end of June, there were 96 of these machines in operation, according to the Federal Tax Authority (FTA).
In December, the FTA also launched a VAT refund system for e-commerce purchases made by tourists during their stay in the UAE.
According to FTA Director General Khalid Al Bustani, the authority remains committed to rolling out additional digital initiatives in line with the government’s drive to reduce bureaucracy and enhance customer satisfaction. One key project is the ‘Maskan’ smart app, which simplifies VAT refunds for Emiratis building new homes through a fully digital, paperless process.
