VAT Refund for UAE National is a special refund scheme available in the UAE VAT law for supporting the UAE Nationals. There are various VAT Refund Schemes available under the UAE Vat Law wherein even unregistered persons can also get benefit out of it.
Vat Refund Scheme for UAE Nationals is available to those who are building new residences in the UAE. The Federal Tax Authority (FTA) released a user guide on Vat Refund for UAE Nationals for their new residence which offers a detailed procedure to be followed while applying for Refund.
Construction of a building is a taxable supply under the UAE Vat Law. Hence, when a person constructs even a residential building, he has to pay tax for the expenses incurred during construction which includes building materials, contractor’s bill and many. Under the Vat Refund Scheme for UAE nationals the tax paid for constructing the new residence can be refunded with certain conditions.
The claim can be made by a natural person only and should be a UAE national. A Refund form should be submitted to FTA along with the requested supporting documentation. It should include the details of the applicant and the property. After reviewing the application if found eligible, FTA will provide a reference number to the applicant.
Moreover, additional information can be asked by FTA or a verification body (appointed and authorized by FTA) in order to perform the review of the documents submitted. Once, the final approval comes the eligible amount will be refunded to the applicant.
In order to claim a refund of the VAT incurred on the construction of a residence, the following conditions must be satisfied:
The application for VAT refund should be submitted to the FTA on any of the events happening first:
The applicant should submit the application whichever happens first from the above. However, he should submit the VAT Refund application within 6 months from the date.
The VAT incurred for the following categories of expenses while constructing a new residence by a UAE National are eligible for VAT Refund under the scheme:
To claim the VAT Refund, you should complete the form available on the FTA website and submit it online, along with copies of supporting documents. It is important that copies of all documentation (i.e. valid tax invoices) supporting the original payment of the VAT are retained in order for the claim to be validated by the FTA.
All you need to do after you have completed the Refund Form is, please send the soft copy (signed version in PDF format) to the following email address along with the supporting documents firstname.lastname@example.org
This VAT refund scheme is beneficial to UAE Nationals in order to reduce their expenditure incurred on account of VAT paid while constructing a new residence. As rightly said by FTA Director-General Khalid Al Bustani, this, “in turn, will lead to achieving the vision of our wise leadership to develop a modern, stable housing system in the UAE.”
We are here to support It is always advisable to have a detailed verification of the eligible documents before proceeding for submitting the application. VAT Consultants from Emirates Chartered Accountants Group will conduct a detailed VAT Compliance Review before proceeding for submitting your VAT Refund application.
Mr. Pradeep Sai
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