The Burj Khalifa in Dubai, UAE
The Burj Khalifa in Dubai, UAE Nick Fewings/Unsplash

The Federal Tax Authority (FTA) approved over 27,330 applications of the United Arab Emirates (UAE) nationals who applied for Value-Added Tax (VAT) refunds for building new residences.

The total refund amount exceeded AED 2.02 billion. Furthermore, the FTA also reported that there has been an increase in the number of individuals - including male and female nationals - who benefited from the VAT refund service.

The report mentioned that the authority received 270 applications, valued at AED 9.11 million in 2018. Whereas, the number of applications reached 1,900 applications in 2019, totaling AED 121.46 million.

The applications number kept on increasing as 2020 marked 3,750 approved applications, valued at AED 301.35 million. The FTA witnessed a notable rise in 2021 in approved tax refund applications, totaling around 5,990 and amounting to AED 467.52 million.

This marked a 59.62% increase in approved applications and a 55.14% growth in the overall tax refund value compared to the previous year. Approved tax refund applications rose to 7,170 in 2022, reaching AED 583.38 million, marking a 19.61% increase in approved applications and a 24.78% growth in the total refund value.

Talking about last year, the trend continued with a substantial increase in approved tax refund applications for UAE nationals who construct new residences. The total value reached AED 720.12 million, with 8,250 applications approved.

These numbers represented a 15.06% growth in approved applications and a 23.44% increase in the tax refund value.

Director-General of the FTA Khalid Ali Al Bustani said, "According to recent indicators, there has been a significant increase in the number of UAE nationals benefiting from the value-added tax refund service for the construction of their new residences over the past five years," as per WAM.

He added, "These results validate the effectiveness of the FTA's ongoing enhancements and modernization initiatives aimed at upholding the service quality in alignment with top-tier benchmarks."

Al Bustani said that the FTA has effectively raised awareness among UAE nationals over the refund service through diverse channels and extending support to simplifying tax refund procedures. Furthermore, individuals are regularly updated on the service's attributes and its ongoing enhancements, ensuring a comprehensive understanding of its benefits and features.

The FTA is expected to continue to develop its services and raise awareness among UAE nationals about the easy electronic service for refunding the value-added tax paid on the construction of their new residences.

The Middle Eastern country is focusing on the UAE nationals' well-being the most as last month GEMS (Global Education Management Systems) Education launched the "Family First" movement at GEMS World Academy in Dubai to help the UAE nationals with personal and collective growth and achievement.