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Applications to Recover VAT on Building New Homes

mba tax uae EXCISE TAX

Applications to Recover VAT on Building New Homes for UAE Citizens to Be Submitted Exclusively via New Online Platform

• The Federal Tax Authority announced it will no longer be accepting applications sent via email as of today

• The new decision is set to save time and expedite VAT recovery procedures.

Abu Dhabi, February 2, 2020 – The Federal Tax Authority (FTA) announced that requests from UAE citizens wishing to recover Value Added Tax (VAT) incurred on the construction of their new homes are to be submitted exclusively through the new online platform starting from Today (Sunday, February 2, 2020).

Launched in January 2020, the new platform allows citizens to recover VAT more easily, the Authority explained in a press statement issued today, adding that as of today, requests submitted via email will no longer be accepted.

The new decision is set to save time for applicants and expedite the procedures for VAT recovery. It was implemented following a series of tests that were run to ensure the new online platform is fully functional, accurate, and efficient, the Authority explained.

The new platform is available on the FTA website; it is easy to use and only requires a few simple steps, the Authority asserted. UAE citizens who are deemed eligible to recover VAT incurred on the construction of their new homes will receive an email listing the documents they are required to submit to complete their application. Once the documents are verified, the applicant is notified and the Authority proceeds to confirm that the amount to be refunded matches the sum of the Tax Invoices submitted. Following final approvals, the refund amount is transferred to the applicant’s bank account.

The statement revealed that the Authority had conducted a survey with UAE citizens looking to recover the VAT they incurred on building their new homes, as well as with Tax Agents. The poll inquired about the efficiency of the new platform, where respondents’ observations were taken into consideration. The FTA stressed that the new platform was designed in accordance with the latest standards to ensure its efficiency, speed, ease of use, and clarity of procedures.

The Federal Tax Authority went on to list the four documents required to submit a request through the new platform, namely, a copy of the applicant’s family book, a building permit included in the certificate of completion issued by the Municipality, a copy of the Emirates ID of the applicant, and a document indicating the date from which the building has been occupied (e.g. an invoice for setting up electricity and water services).

The Federal Tax Authority called on citizens wishing to recover the taxes they incurred on the construction of their new homes to review the guideline the FTA had issued in January 2020, which are available through the FTA official website. The manuals provide a simple yet comprehensive explanation of the steps that need to be followed to locate, fill, submit, and track the VAT recovery request form.

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