Emiratis claim Dh3.2bn for new homes under tax refund scheme

The UAE has said citizens have reclaimed Dh3.2 billion ($871 million) in VAT refunds for building new residences as of June, after the launch of the service eight years ago, as the country implements new tax initiatives and reforms.

The total number of approved applications for VAT refunds related to new residences for UAE citizens reached about 38,000, the Federal Tax Authority said on Sunday.

This is up more than 22 per cent from the 31,000 approved applications and nearly 26 per cent higher than the Dh2.54 billion in June 2024. In the first half of this year, 3,097 new applications were approved, resulting in cumulative refunds of Dh284.77 million, the FTA said.

The UAE introduced 5 per cent VAT on most goods and services in January 2018 as part of its plans to diversify and reduce economic dependence on oil.

When a UAE citizen owns or acquires land in the UAE on which they build or commission the construction of their own residence, they can claim for a VAT refund incurred on the development.

Tax refund options for tourists

The FTA also said it is continuing to expand the digital tax refund system for tourists, with the number of registered retail outlets connected to the system rising to 18,410 shops by the end of June. That is up from 17,720 shops at the end of 2024 and the 17,080 six months earlier.

The total number of outlets that have joined the digital tax refund system for tourists in the past two years stands at 3,390.

The VAT refund scheme for tourists has been available in the Emirates since November 2018. Tourists who spend at least Dh250 on purchases can claim their refunds at designated outlets before leaving the country. The UAE also introduced a paperless tax refund system in 2022 for tourists visiting the country, doing away with the need to retain receipts.

In June 2019, the country launched fully automated self-service kiosks across the country to support tourists to claim VAT refunds before departing the UAE. The number of the machines at malls and hotels that automate the tax refund process for tourists, taking only two minutes per transaction, was 96 as of the end of June, the FTA said.

In December, the authority launched the e-commerce purchases VAT refund system for tourists during their stay in the UAE.

The authority plans to continue to introduce various projects to digitally transform the tax sector in line with the government’s strategy to reduce bureaucracy and maintain customer satisfaction, said Khalid Al Bustani, the FTA's director general.

“Among the key initiatives in this area is the ‘Maskan’ smart application, which enhances the ease and convenience of VAT refunds for Emiratis, and relies on paperless procedures with 100 per cent fully digitised procedures," he said.

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Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
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Specialist robotics and science laboratories
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How much do leading UAE’s UK curriculum schools charge for Year 6?

Nord Anglia International School (Dubai) – Dh85,032
Kings School Al Barsha (Dubai) – Dh71,905
Brighton College Abu Dhabi - Dh68,560
Jumeirah English Speaking School (Dubai) – Dh59,728
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Sole survivors

Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.

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FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

Tips for job-seekers

Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East