The Federal Tax Authority (FTA) announced on Sunday that VAT refunds for UAE nationals building new homes have reached a total of Dhs2.9 billion since the service began over six years ago. By the end of 2024, the cumulative number of approved applications stood at 35,000, compared to 27,000 at the end of 2023. This marks a 27.52% rise in approved applications and a 32% increase in refund value over the past year.

In 2024 alone, 7,520 applications for new residence construction refunds were approved, amounting to Dhs704.38 million. This reflects consistent growth since 2018 when only 270 applications worth Dhs9.11 million were processed. By 2023, the number of annual approvals had grown to 8,250 applications, valued at Dhs720.12 million.

The FTA also highlighted advancements in its VAT refund system for tourists. The number of retail outlets linked to the system grew to 17,847 by the end of 2024, up from 16,357 in 2023, a 9% increase. Over the past two years, 3,008 new outlets have joined the scheme, offering tourists more options for tax refunds.

Additionally, the FTA expanded its self-service tax refund kiosks for tourists, increasing their number to 97 by the end of 2024, compared to 82 the previous year. These kiosks, available in airports, shopping malls, and hotels, process refunds in under two minutes.

Khalid Ali Al Bustani, Director-General of the FTA, told Gulf Today that the authority’s digital initiatives align with the UAE’s push for smart transformation. He stated, “The FTA pays great attention to the continuous development and update of its digital systems in accordance with global best practices.”

The FTA plans to roll out more digital projects in 2025 to further enhance its tax refund services, streamline processes, and improve customer satisfaction.

Meanwhile, the Federal Authority for Identity, Citizenship, Customs, and Port Security highlighted the role of UAE Customs in supporting the country’s economy and ensuring safety. Major General Suhail Saeed Al Khaili emphasized the progress made in customs operations and digital transformation, coinciding with International Customs Day on January 26.