VAT refund for building new residences by UAE

“VAT Alert: UAE FTA releases user guidance on VAT refund for building new residences by UAE Nationals

The FTA has released a VAT Refund User Guide for Building New Residences by UAE Nationals, dated August 2018. This is in relation to the input VAT on expenses incurred by UAE Nationals on the construction of his/her residence . The Guide can be retrieved here.

According to the Guide, the conditions for making a VAT refund claim are the following:

• The applicant must be a UAE National;
• The expenses incurred must relate to a newly constructed building which is to be used solely as a residence by the applicant and/or his or her family.
• The expenses must relate to certain goods and services provided by contractors and building materials.

UAE Nationals who wants to apply for VAT refund on the above expenses shall submit a Refund Form, along with the supporting documents, to the FTA. The Refund Form must be submitted within 6 months from the date of completion of the newly built residence.

Detailed instructions on the application and process for VAT refund in respect to the expenses on newly constructed building are also provided in the VAT Refund User Guide.”