2.9 billion dirhams in taxes recovered by citizens for building their homes

The Federal Tax Authority confirmed that its digital systems for refunding value-added tax for groups legally qualified to recover tax, including the system for refunding tax paid for the construction of new housing for citizens and the tax refund system for tourists, achieved outstanding results during the year 2024 as a result of the continuous development and modernization plans it implemented in this field. during the last period.

She explained that the cumulative total of approved applications for male and female citizens who recovered the value-added tax they paid for the construction of their newly constructed homes amounted to 34.9 thousand applications with a total value of 2.9 billion dirhams since the start of providing the service more than six years ago until the end of last year, compared to a cumulative total until the end of the year. 2023 reached more than 27 thousand orders with a total value of more than 2.2 billion dirhams, an annual increase. The percentage reached 27.52% in the number of approved applications, and 32% in the value of refunds.

The number of applications approved during the year 2024 to recover the tax paid for the construction of new citizens’ homes reached 7,520 applications with a total value of 704.38 million dirhams.

The number of applications approved to recover the tax paid for the construction of new citizen housing increased from 270 applications worth 9.11 million dirhams in 2018 to 1,900 applications during 2019 with a total value of 121.46 million dirhams, then it reached 3,750 applications worth 301.35 million dirhams during 2020, and the number Applications approved in 2021 towards 5,990 applications worth 467.52 million dirhams, 7,170 applications worth 583.38 million dirhams during 2022, and about 8,250 applications with a total value of 720.12 million dirhams in 2023.

The authority explained that the base of retail stores linked electronically to the system has witnessed a noticeable expansion throughout the country over the past years. The number of sales outlets registered with the Authority, linked to the system, increased to 17,847 stores by the end of 2024, compared to 16,357 stores by the end of 2023, an increase of more than 9% over the past year. As 1,490 new commercial outlets were connected to the system during 2024, after 1,518 outlets were connected to it in the previous year, bringing the total number of sales outlets that joined the digital system for tax refunds for tourists during the past two years to 3,008 outlets.

The Authority confirmed its keenness to expand the deployment of self-service devices through which tax refund procedures for tourists upon their departure from the country are carried out completely automatically in approximately two minutes for each transaction, pointing out the availability of these devices in many major commercial centers “malls” and hotels, in addition to outlets. Tourists leaving the country, noting that the number of self-service machines to refund taxes for tourists increased to 97 machines by the end of 2024, compared to 82 machines by the end of 2023, an increase of 18.3%, as it was added 15 new devices during 2024.

His Excellency Khaled Ali Al Bustani, Director General of the Federal Tax Authority, said that the Authority pays great attention to the continuous development and modernization of its digital systems in accordance with best practices, in line with the country’s strategy for digital transformation, and that the indicators are that its efforts have had a positive impact on the quality and performance of its services in general, including digital systems. To refund the value-added tax to groups legally qualified for this, pointing out that the tax refund service for new housing construction for citizens and the tax refund service for tourists have witnessed successive modernizations over the past years by introducing more facilities to simplify And accelerating procedures through digital mechanisms characterized by clarity, transparency and smoothness.

He added that the Authority will continue in 2025 to launch and implement various projects and initiatives in the field of digital transformation in the tax sector to keep pace with the government’s strategy for smart transformation of all services, based on smooth and proactive digital procedures, in a way that supports efforts to eliminate bureaucracy and maintain high levels of customer happiness.