FTA Expands VAT Refund Scheme for UAE Nationals Building New Residences

Update: June 2026

The Federal Tax Authority (FTA) has officially expanded the scope of the VAT Refund Scheme for UAE Nationals constructing new private homes. Announced on June 9, 2026, the updated initiative allows citizens to recover Value Added Tax (VAT) on a significantly wider range of construction and property enhancement costs.

Importantly, this expansion is retroactive and applies to all qualifying VAT refund applications submitted on or after January 1, 2026.

Newly Eligible Materials and Expenses

Under the revised guidelines, UAE nationals can now claim VAT refunds on the following property features:

  • Staff Accommodations: Built-in quarters for watchmen, drivers, and domestic workers.

  • Recreational Spaces: Home gyms and dedicated game rooms.

  • Smart Home & Security Systems: Integrated security networks, built-in smart home tech, and electronic/smart doors for main entrances and garages.

  • Outdoor & Landscaping: Swimming pools, outdoor fountains, landscaping works, and built-in garden features.

  • Indoor Aesthetics: Decorative indoor water features.

  • Complete Reconstruction: Demolition and rebuilding expenses for full home reconstruction projects.


Compliance and Claim Requirements

While the scope has broadened, the core conditions for claiming remain strictly enforced. To qualify, these new additions must be:

  1. Permanent: Integrated or built into the property (standalone appliances and loose furniture are still excluded).

  2. Co-located: Constructed on the exact same plot of land as the main private residence.

  3. Personal Use: Exclusively for the personal or family needs of the homeowner, not for commercial use.


How We Can Help

Navigating the EmaraTax platform, the Maskan app, and strict FTA documentation rules requires precise record-keeping. At Al Mumtaz General Accounts, we ensure your construction tax invoices, supplier TRNs, and payment proofs are impeccably structured and fully compliant before submission.

If you are planning or completing a residential build, connect with our tax advisory team today to maximize your eligible VAT recovery.

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