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New residence VAT Refunds in UAE
New residence VAT Refunds Services in Dubai, UAE
UAE Nationals Building New Residences: How does it work?
Where a UAE National owns or acquires land in the UAE on which he / she builds or commissions the construction of his / her own residence, he / she is entitled to request a special refund from the FTA for the VAT incurred on certain expenses related to the construction of a new residence, subject to certain conditions stated in Article 66 of the Executive Regulation.
New residence VAT Refunds Services in Dubai, UAE
What is the meaning of ‘residence’ for VAT purposes?
The term ‘residence’ refers to any building (including townhouses and villas) used predominantly as a private home of a natural person, including fixtures and fittings belonging thereto and enjoyed therewith, which comprise at least of cooking and washroom/bathroom facilities in addition to sleeping quarters.
Any subsequent attachment to the residence or detached structures subsequently built on the same plot would not be regarded as a ‘residence’ for the purposes of the New Residences Refund Scheme, unless that attachment/detached structure meets the definition of ‘residence’ stated above on a standalone basis.
Buildings and units registered for commercial purposes, including hotel apartments, do not qualify as ‘residences’ for purposes of the New Residences Refund Scheme.
Who is eligible?
The claim may only be made by a natural person who is a national of the United Arab Emirates and holds a Family Book.
Criterion relating to the usage of the building:
Expenses must relate to a newly constructed building which is to be used solely as a residence of the applicant and/or his or her family.
Criteria relating to the nature of expenses:
VAT may be recovered in respect of the following categories of expenses:
- Building materials, being goods of a type normally incorporated by builders in a residential building or its site, but not including furniture or electrical appliances; and
- Services provided by contractors, including services of builders, architects, engineers, and other similar services necessary for the successful construction of a residence.
VAT incurred on transport costs and clearing agent fees on importation of building material may be recovered to the extent these costs are incurred directly in connection with building materials to be used for constructing a private residence for a UAE citizen or his family.
Goods and materials are normally considered to be incorporated into a building when they are fixed in such a way that the fixing or removal of those goods would require the use of tools or result in the need for remedial work to the fabric of the building, or cause damage to the goods/materials themselves
Deadline for the application
The Refund Request must be sent to the FTA within 12 months from the date of completion of the newly built residence which is the earlier of the date:
- the residence becomes occupied; or,
- when it is certified as completed by a competent authority in the UAE (the Building Completion Certificate).
Application process
All applications for New Residence VAT Refunds must be submitted via the FTA e-services portal.
Documentation Requirements:
- Copy of the applicant’s Emirates ID
- Copy of the applicant’s Family Book
- Copy of the property completion certificate and building permit
- Copy of your property site plan
- Documentary proof to support that you own the plot of land in the UAE
- Copy of the letter/certificate issued and stamped by your bank which includes details such as the account holder’s name, bank’s name and the IBAN
- Other documentation to support the date the building is occupied (if required).
Applying for New Residence VAT Refund
Reviewing the progress of your New Residence VAT Refund Request
Expense items eligible / not eligible for refund
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Frequently Asked Questions on New residence VAT Refunds in UAE
The New Residence VAT Refund Service in the UAE allows eligible expatriates who have recently moved to the country to claim a refund on VAT paid on goods purchased for personal use. This service is part of the UAE's efforts to simplify the tax process for residents and encourage foreign investments.
Expatriates who have recently moved to the UAE and have established residency are eligible for the VAT refund on goods bought within the UAE. To qualify, individuals must meet specific criteria, such as not being a UAE national and having a valid residency visa.
New residents can apply for the VAT refund by submitting a claim through the official online platform provided by the UAE government. They must provide receipts for qualifying purchases made within the specified period and meet all required documentation standards to successfully process the refund.
Eligible purchases include goods bought for personal use such as household items, electronics, and furniture. However, certain goods like food, services, and luxury items may not be eligible for the VAT refund.
To apply for the VAT refund, new residents will need to provide documents including a valid UAE residency visa, purchase receipts showing VAT payments, proof of residency status, and other documents as specified by the tax authority.
While the VAT refund service itself is free, there may be administrative or service fees if you choose to use third-party services to assist with the application process. Always check the official government guidelines to ensure you're not paying unnecessary fees.
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