FTA expands VAT refunds for UAE citizens building new homes — eligible expenses widened — effective 1 Jan 2026
The Federal Tax Authority (FTA) has expanded the list of construction expenses eligible for VAT refunds for UAE nationals building new residences, now including staff quarters, smart home systems, pools, landscaping, and demolition-rebuild costs.
The analysis — automated & source-checked
- Applies to
- Tax · UAE
- What to do
- UAE nationals planning new home construction should review the expanded eligible expense list on the FTA's digital platform and ensure their projects comply with the requirements (items must be part of the residence, on the same plot, and directly connected to the main residence). Submit VAT refund applications on or after 1 January 2026 through the updated digital platform.
The FTA's digital VAT refund platform has been updated to reflect the newly approved categories. The authority will conduct awareness sessions across the UAE at local district councils to help citizens understand and benefit from the expanded programme. The total value of approved refund claims is projected to exceed Dh1 billion in 2026, compared to Dh754 million in 2025.
Source
“The Federal Tax Authority (FTA) has launched a new initiative that expands the range of expenses eligible for value-added tax (VAT) refunds for UAE nationals building new homes”
— Gulf News, 9 Jun 2026
Reported by: Gulf News 9 Jun 2026 Read the original ↗ More from Gulf News →
Quick answers
What do I need to do?
UAE nationals planning new home construction should review the expanded eligible expense list on the FTA's digital platform and ensure their projects comply with the requirements (items must be part of the residence, on the same plot, and directly connected to the main residence). Submit VAT refund applications on or after 1 January 2026 through the updated digital platform.
What was the deadline?
1 Jan 2026 — this deadline has passed.
Who reported this?
Gulf News (UAE).
When was it announced?
9 Jun 2026.
Where can I read the original?
Read the original at Gulf News: https://gulfnews.com/business/property/uae-expands-vat-refunds-for-citizens-building-new-homes-in-2026-1.500568203
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