UAE VAT refund for new homes surges to 4,000 claims in H1 2026
UAE VAT refund for new homes reached 4,000 approved claims worth AED 353.5m in H1 2026 as FTA expands eligibility, digitises Masaken and adds AI invoice checks.
The Federal Tax Authority announced a marked rise in VAT refund for new homes after recording about 4,000 approved applications worth AED 353.5 million in the first half of 2026. This increase follows enhancements to the digital refund service and targeted outreach aimed at helping Emirati citizens recover value-added tax paid on newly constructed residences. Officials said the expansion is part of a broader push to modernise housing support and streamline administrative procedures for beneficiaries.
Approved claims and growth compared with 2025
The FTA reported 4,000 approved refund requests in H1 2026, up from roughly 3,100 requests valued at AED 284.8 million in the same period of 2025. That represents a 27.5 percent rise in the number of approved applications and a 24.1 percent increase in the total refund value during the first six months of 2026. The authority framed the growth as evidence that recent service improvements and public-awareness efforts are yielding tangible results for citizens rebuilding or completing new homes.
FTA credits digital upgrades and awareness campaigns
Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority, attributed the surge to continuous enhancements of the VAT refund platform and expanded awareness programmes. He said the FTA introduced a series of facilitation measures to simplify and accelerate refund procedures through its online system. The authority also stepped up informational outreach using diverse awareness channels to guide citizens through eligibility criteria and the application process.
Policy move linked to Year of the Family initiative
Under guidance to make 2026 the “Year of the Family,” the FTA widened the scope of payments eligible for VAT refund for new homes to better support housing stability. The policy adjustment aims to contribute to a modern housing ecosystem that enhances citizens’ quality of life and long-term wellbeing. Officials described the change as complementary to national housing strategies that prioritise family welfare and sustainable home ownership.
Proactive integration with the “Masaken” application
A new proactive service allows citizens who build or complete private homes to initiate VAT refund requests automatically through the “Masaken” smart application once the relevant municipality issues a building completion certificate. The feature also triggers request creation when a municipal building permit is issued, after which applicants receive SMS and email notifications. These messages include a link or QR code directing the citizen to the Masaken app to complete any remaining steps, reducing manual follow-up and improving transparency.
Automation of invoices, Central Bank linkage and AI verification
The FTA described a number of technical enhancements that reduce paperwork and speed processing. Registered suppliers’ invoices are now populated automatically in the citizen’s Masaken account when issued, and invoicing details can be exported as a consolidated Excel file to replace earlier manual entry. The number of required banking information fields has been reduced through integration with the Central Bank, and artificial intelligence tools are deployed to verify refund amounts and supplier tax registration numbers. The authority said consolidating all invoices into a single file also helps prevent duplication and simplifies internal audit trails.
The authority’s combined measures — digital onboarding, Central Bank ties, automated invoicing and AI checks — are intended to cut processing times and reduce errors in refund calculations. Officials indicated these improvements will also allow staff to focus on complex cases while routine validations proceed automatically.
The FTA said the recent initiative and system upgrades are already producing measurable benefits in uptake and citizen satisfaction, and pledged ongoing enhancements to the refund process throughout 2026. The authority recommended that eligible homeowners ensure their suppliers are registered and that they keep municipal documents accessible to take full advantage of the streamlined service.
