08 Feb 2020
Streamlining VAT recovery
The Federal Tax Authority has introduced a new platform to streamline the process of recoup value added tax imposed by UAE citizens to build new homes.
A statement by FTA said that Citizens who qualify for VAT recovery on new-build homes will get an email with a request to submit the necessary documents to complete the processing.
Federal Tax Authority statistics said that the total number of requests given by UAE citizens to recover VAT on the construction of their new homes has reached 1,474, enabling citizens to recover AED84.07 million.
This shows an important increase from the previous year, when the FTA received 539 applications claiming AED23.74 million that were approved by end of June 2019.
After document verification is done, the citizen is notified of their entitlement. If the refund amount matches the tax invoices given then, following final approval, the refund amount is moved to the bank account of the applicant.
“Launching the online platform to recover VAT on the construction of new homes for UAE citizens is part of the authority’s strategy to provide best-in-class services and continuously revise executive procedures for tax legislation to ensure efficient performance, facilitate procedures, and achieve customer satisfaction among citizens, residents, and visitors.” Said Khalid Ali Al Bustani, FTA director general.