UAE Expands VAT Refunds for New Home Construction Costs

The UAE Federal Tax Authority has expanded VAT refund eligibility for UAE nationals building new homes, adding more construction-related expenses.
The initiative is expected to save citizens about AED 200 million in VAT, with average savings of around AED 25,000 per claim.
Approved refund claims in 2026 are projected to exceed AED 1 billion, up from about AED 754 million in 2025.
The policy applies to VAT refund claims submitted on or after 1 January 2026, and the digital refund platform has been updated.
Newly eligible costs include items such as staff quarters, home gyms, smart security systems, and other built-in fixtures for private family use.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.