Strong Growth in VAT Refund Systems in UAE

The Federal Tax Authority reports a significant increase in VAT refund requests for new citizen homes in 2024, highlighting successful digital system enhancements.


Strong Growth in VAT Refund Systems in UAE

The Federal Tax Authority confirmed that its digital system for refunding value-added tax for eligible categories is in accordance with our law for tax recovery. Exceptional results were achieved during the year 2024 as a result of the developmental plans implemented in this regard. The total number of requests submitted for the refund of value-added tax that citizens had incurred when building their new homes reached 34.9 thousand requests worth 2.9 billion dirhams. The number of submitted requests during the year 2024 for the refund of the paid tax on citizens' new housing reached 7520 requests worth 704.38 million dirhams. This contrasts with previous years that witnessed a noticeable increase in the number of requests and the amounts recovered. The authority stated that the retail tax system's framework has witnessed significant expansion over the past few years. The number of registered sales outlets with the authority increased by the end of 2024, and service devices for tax refunds to tourists were added to several main commercial centers. Saad Khalid Ali Al-Bustanji, General Director of the Federal Tax Authority, confirmed that the authority's efforts to improve digital systems have positively impacted the quality and performance of tax services in general, referring to the expansion of services and the simplification of procedures through transparent digital tools. The authority continues to launch initiatives and projects in the field of taxation in line with the government's strategic initiative for the digital transformation of government services during 2025.

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