The UAE continues to enhance its tax refund services, granting $790 million in VAT refunds to nationals constructing new homes in 2024. The Federal Tax Authority (FTA) has also expanded its VAT-refund systems for tourists, marking a significant year of development in digital tax systems.
VAT Refunds for UAE Nationals
In 2024, the UAE processed 7,520 VAT refund applications from nationals constructing new homes, totaling $192 million. The cumulative total of VAT refunds for UAE nationals since the inception of the program reached 34,900 applications, amounting to $790 million. This marks a 27.52% increase in the number of applications and a 32% rise in the value of refunds compared to 2023.
Growth in VAT Refund Applications
The VAT refund program for housing construction has grown substantially since its launch. From just 270 applications worth $2.5 million in 2018, the program has expanded, with 8,250 applications processed in 2023, amounting to $196.1 million.
Digital VAT Refund for Tourists
The FTA’s VAT refund system for tourists has also seen remarkable growth, with 17,847 retail outlets now linked to the system by the end of 2024, an increase of 9% over the previous year. Additionally, the number of self-service kiosks for tourists, where refunds are processed in under two minutes, grew to 97 by 2024, up from 82 in 2023.
Continuous Development of Digital Systems
The FTA’s Director-General, Khalid Ali Al Bustani, highlighted the importance of digital transformation in enhancing the quality of VAT refund systems. The continued development of self-service kiosks and retailer participation is in line with the UAE’s smart transformation strategy, aimed at streamlining processes and ensuring customer satisfaction.