The Federal Tax Authority (FTA) has announced that VAT refunds for UAE nationals constructing new residences have reached AED3.2 billion by June 2025. This follows the successful rollout of the Authority’s digital VAT refund systems, which continue to demonstrate accuracy and efficiency.
Significant growth in refund applications and values
The number of approved VAT refund applications for new homes built by UAE nationals has grown substantially. From the launch of the system eight years ago to June 2025, around 38,000 applications have been approved. This is up from 31,000 approved applications recorded by June 2024. As a result, the value of refunds rose by 25.72%, from AED2.54 billion to AED3.2 billion—a year-on-year increase of 22.74% in application volume.
Between June 2024 and June 2025 alone, over 7,000 new applications were approved, amounting to AED653.1 million. Within the first half of 2025, 3,097 applications were approved, generating AED284.77 million in refunds for UAE nationals.
Expansion of tourist tax refund network
The Authority also reported ongoing development of its digital tax refund system for tourists. By the end of June 2025, 18,410 retail outlets were connected to the system, up from 17,720 at the end of 2024 and 17,080 in June 2024. This marks a steady expansion in all emirates.
In the first half of 2025 alone, 697 outlets joined the platform, reflecting a 29% increase over the same period in 2024, which saw 540 outlets added. In total, 3,390 outlets have joined the system over the past two years.
The FTA noted that 96 self-service kiosks were deployed at shopping malls, hotels, and departure points by the end of June 2025. These kiosks complete VAT refund transactions for tourists in approximately two minutes.
Digital upgrades aligned with UAE transformation strategy
Khalid Ali Al Bustani, Director General of the FTA, stated, “The indicators reflect the ongoing development and upgrade of our digital systems in line with global best practices, and in alignment with the UAE’s digital transformation strategy. The Authority’s initiatives in this regard have positively impacted the overall quality and performance of its services, particularly the digital VAT refund systems for eligible categories.”
He highlighted the Maskan smart application as a notable advancement, offering UAE nationals a fully digital, paperless refund process.
Al Bustani added, “As part of its efforts to develop digital services, FTA launched last December the world’s first e-commerce purchases VAT refund system for tourists during their stay in the UAE, supporting the UAE’s leadership in all sectors, including the tourism sector and the e-commerce sector, in continuation of what has been achieved in this field, where more than two years ago the Authority launched the digital VAT refund system for tourists, which is based on 100% paperless procedures and is constantly updated, and provides a digital platform that allows tourists to scan their passports easily, and automatically share their transactions as digital invoices, check their invoices through the shopper portal for a seamless shopping experience, and receive a refundable tax credit for their purchases in a convenient and fully digitalised manner.”
He concluded by affirming the Authority’s commitment to launching further digital transformation initiatives, with a continued focus on proactive, paperless services that reduce bureaucracy and enhance satisfaction.
