FTA expands VAT refund scope for UAE nationals building new homes — eligible expenses broadened — effective 1 Jan 2026
The Federal Tax Authority (FTA) has expanded the categories of construction expenses eligible for VAT refunds for UAE citizens building new residences, now including staff quarters, home gyms, smart home systems, pools, and landscaping.
The analysis — automated & source-checked
- Applies to
- Tax · UAE
- What to do
- UAE nationals constructing new residences should review the updated FTA digital VAT refund platform to confirm which expenses qualify under the expanded scope. Submit refund claims on or after 1 January 2026 with all required supporting documentation. Ensure claimed items are integral to the new residence, constructed on the same plot, and intended for private family use.
The FTA estimates the expanded scope will yield approximately AED 200 million in VAT savings for UAE nationals, averaging AED 25,000 per claim. Previously approved refund items remain eligible; new additions include staff quarters for watchmen, drivers, or domestic workers; home gyms and game rooms; integrated security and smart home systems with built-in components; electronic or smart doors for main residence and garage; swimming pools, fountains, and decorative indoor water features; landscaping; and complete home reconstruction projects including demolition and rebuilding costs. The FTA will conduct awareness sessions at district councils across the UAE to educate citizens on the initiative and gather feedback.
Source
“The Federal Tax Authority (FTA) has launched a new initiative to expand the scope of expenses eligible for VAT refunds for UAE nationals constructing new residences, allowing citizens to claim refunds on an additional range of construction costs.”
— Federal Tax Authority, 14 May 2026
Source: Federal Tax Authority — official 14 May 2026 Read the original ↗ More from Federal Tax Authority →
Quick answers
What do I need to do?
UAE nationals constructing new residences should review the updated FTA digital VAT refund platform to confirm which expenses qualify under the expanded scope. Submit refund claims on or after 1 January 2026 with all required supporting documentation. Ensure claimed items are integral to the new residence, constructed on the same plot, and intended for private family use.
Who issued this?
Federal Tax Authority (UAE).
When was it announced?
14 May 2026.
Where can I read the original?
Read the original at Federal Tax Authority: https://tax.gov.ae/en/media.centre/News/fta.to.expand.scope.of.expenses.eligible.for.vat.refunds.for.uae.nationals.constructing.new.residences.aspx
Subscribe — free
Get the next change before it's a deadline
The whole front, every morning. Free.