Khaleej Times, Tue, Aug 13, 2024 | Safar 9, 1446
FTA’s home-construction tax refunds surge 32.4% to Dh2.45 billion
Emirates:
The Federal Tax Authority (FTA) has approved 30,920 applications for Value Added
Tax (VAT) refunds to Emirati citizens worth Dh2.54 billion in the first half of
2024, up 32.45 per cent compared to the same 2023 period.
By the end of the first half of 2023, the total approved applications were
23,340 valued at Dh1.54 billion. This marks a 65.07 per cent increase in the
value of refunded amounts over 12 months.
In a press statement issued on Monday, the authority explained that in the year
between the end of June 2023 and the end of June 2024, about 7,580 new
applications were approved, allowing citizens to reclaim over Dh1 billion in
taxes they paid on building new homes. In the first six months of this year,
3,590 new applications were approved, refunding Dh336.09 million in taxes.
Khalid Ali Al Bustani, director-general of the FTA, attributed the significant
increase in the number of UAE citizens benefiting from the Tax Refund Scheme for
UAE Nationals Building New Residences to increased tax awareness and continuous
improvements made by the Authority to the service since its launch six years
ago.
"These enhancements include introducing more facilities to streamline and
expedite the refund process for UAE citizens who meet the legal requirements
for tax refunds," Al Bustani said. "This initiative is in line with FTA's
strategy to prioritise citizens' happiness, as per our wise leadership's
vision to establish and enhance a modern housing system for Emirati citizens
and provide them with the highest living standards," said Al Bustani.
FTA launched its Maskan smart application this year, providing further
facilities for UAE citizens to request refunds on VAT incurred in
constructing new homes with 100 per cent digital and paperless procedures.
"This allows Emirati citizens to benefit from digitisation efforts and
expedite the tax refund process," he explained. "The initiative forms part
of the Authority's contributions under the Transformational Projects Series,
which aims to advance digital services, limit paper consumption, and
minimise the number of required documents, among other facilities."
FTA has several ongoing plans to develop the service and continue its
campaigns to educate citizens about the streamlined e-services they can use
to apply for VAT refunds on building new residences.
These include virtual meetings to offer consultations and clarifications,
answer enquiries, and allow direct communication with FTA staff handling VAT
refunds on new homes, which enable taxpayers to complete their transactions
as fast as possible.
Statistics reveal a notable increase in the number and total value of approved
applications since the service was first offered to UAE citizens. Approved
applications rose from 270 requests worth Dh9.11 million in 2018 to 8,250
applications worth Dh720.12 million approved in 2023.