FTA expands VAT refund scope for UAE citizens building homes — eligible from 1 Jan 2026
The Federal Tax Authority (FTA) has expanded eligible expenses for VAT refunds on new residential construction by UAE nationals, now including smart home systems, pools, landscaping, and staff quarters. Citizens can claim approximately Dh25,000 per refund on qualifying items that form an integral part of the new residence.
The analysis — automated & source-checked
- Applies to
- Tax · UAE
- What to do
- UAE nationals planning new residential construction should review the expanded eligible expense categories on the FTA's digital VAT refund platform and prepare supporting documentation for claims submitted from 1 January 2026 onwards. Ensure all items claimed form an integral part of the residence and meet FTA conditions and procedures.
The FTA estimates the initiative will deliver Dh200 million in total VAT savings for UAE nationals in 2026, with approved refund claims expected to exceed Dh1 billion compared to Dh754 million in 2025. Newly eligible items include integrated security and smart home systems, electronic or smart doors, swimming pools, fountains, decorative water features, landscaping, home gyms, game rooms, staff quarters for domestic workers, and complete home reconstruction projects including demolition and rebuilding costs. All items must form an integral part of the new residential property, be constructed on the same plot of land, and directly serve the primary residence. The FTA will conduct discussion sessions across UAE district councils to explain the initiative and gather public feedback.
Source
“The UAE's Federal Tax Authority (FTA) has expanded the scope of expenses eligible for value-added tax (VAT) refunds for UAE nationals constructing new residences, which will allow them to save approximately Dh25,000 per claim.”
— Khaleej Times, 9 Jun 2026
Reported by: Khaleej Times 9 Jun 2026 Read the original ↗ More from Khaleej Times →
Quick answers
What do I need to do?
UAE nationals planning new residential construction should review the expanded eligible expense categories on the FTA's digital VAT refund platform and prepare supporting documentation for claims submitted from 1 January 2026 onwards. Ensure all items claimed form an integral part of the residence and meet FTA conditions and procedures.
What was the deadline?
1 Jan 2026 — this deadline has passed.
Who reported this?
Khaleej Times (UAE).
When was it announced?
9 Jun 2026.
Where can I read the original?
Read the original at Khaleej Times: https://www.khaleejtimes.com/business/dh25000-savings-per-claim-fta-expands-scope-for-vat-refund-for-uae-citizens
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