UAE Expands VAT Refunds, Saving Families Dh25,000 on New Homes

• The UAE Federal Tax Authority has expanded VAT refunds for UAE nationals building new homes, aiming to reduce construction costs and support families.
• The change is expected to save Emirati citizens about Dh200 million in total, with an average refund of Dh25,000 per claim; approved claims could exceed Dh1 billion in 2026.
• New eligible expenses include watchman/driver/domestic worker accommodation, home gyms, game rooms, smart home and security systems, smart doors, pools, fountains, landscaping, and full reconstruction costs.
• The rules apply to refund applications submitted on or after January 1, 2026, as long as the features are part of the residence on the same plot and connected to the main home.
• The FTA will run awareness sessions nationwide and has updated its digital refund platform to make claims easier.

Source: gulfnews.com

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.

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