- June 12, 2018
- Posted by: mafadmpanel
- Category: News
ABU DHABI, 19th May 2018 (WAM) – The Federal Tax Authority (FTA) has set three requirements and procedures for UAE nationals to refund Value Added Tax (VAT) incurred on the new residences.
The conditions state that in order to refund VAT, applicants must be UAE national; the monetary cost in question must have gone towards financing the construction of a new residence, set to be used exclusively as a residential unit for the applicant and/or their family; and finally, the VAT refund only includes the money spent on establishing the unit, such as the amounts paid as building materials.
The FTA issued a comprehensive guide that clarifies the VAT refund process, publishing it on its official website. The guide can be viewed on the following link: https://www.tax.gov.ae/ar/pdf/VAT-Refund-Building-New-Residences-by-UAE-Nationals-User-Guide-full.pdf In a press release issued today, the Authority explained that UAE citizens have the right to recover VAT when constructing their own residences. They ought to submit a request to recover the tax incurred on construction costs from the FTA. The request must be submitted within six months from the completion date of the construction project, which precedes the date of occupancy of the building, or the date of issuance of a certificate of completion for the building by the competent authorities, or another date determined by the Federal Tax Authority whatever comes first.