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UAE Corporate Tax

UAE Expands VAT Refund Scope for Nationals Building Homes

By Noura Lawyers · UAE Law Update · Federal · 2 min read

The Federal Tax Authority (FTA) is expanding the scope of expenses eligible for VAT refunds for UAE nationals constructing new residences. This move aims to support UAE nationals in building their own homes by providing them with a refund of the VAT incurred on the construction costs.

Update note

Who should read this

UAE nationals constructing new residences should immediately review this update to determine their eligibility for a VAT refund.

Directly affected

UAE nationals constructing new residences

Key facts

  • Expanded scope of eligible expenses for VAT refunds for UAE nationals
  • Applies to UAE nationals constructing new residences
  • Aims to support UAE nationals in building their own homes
  • Provides a refund of VAT incurred on construction costs
  • Implemented by the Federal Tax Authority (FTA)
  • No specific date mentioned for the implementation

What this means for you

UAE nationals constructing new residences may now be eligible for a refund of VAT incurred on construction costs, supporting them in building their own homes.

Directly affected: UAE nationals constructing new residences

Action items

  1. Review the updated list of eligible expenses for VAT refunds
  2. Determine eligibility for a VAT refund on construction costs
  3. Submit a claim for a VAT refund to the FTA
  4. Maintain accurate records of construction costs and VAT incurred

Litigation impact

This update may impact pending or future disputes related to VAT refunds for UAE nationals constructing new residences, and affected parties should consult with a tax expert to understand their rights and obligations.

Source

Federal Tax Authority — News
https://tax.gov.ae/en/media.centre/news/fta.to.expand.scope.of.expenses.eligible.for.vat.refunds.for.uae.nationals.constructing.new.residences.aspx
Original-source date: — · Captured: 2026-06-20T08:00Z

Verified against Federal Tax Authority — News ·
Show full English translation / verbatim source text
The Federal Tax Authority (FTA) announced that it will expand the scope of expenses eligible for VAT refunds for UAE nationals constructing new residences. This decision aims to support UAE nationals in building their own homes by providing them with a refund of the VAT incurred on the construction costs.

This update is generated from a public regulator publication and reviewed under the firm's automated editorial quality gate. General information only — it does not constitute legal advice. For advice on a specific matter, please contact us. Last updated: 20 June 2026.

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Frequently asked questions

What does “UAE Expands VAT Refund Scope for Nationals Building Homes” change?

The Federal Tax Authority (FTA) is expanding the scope of expenses eligible for VAT refunds for UAE nationals constructing new residences. This move aims to support UAE nationals in building their own homes by providing them with a refund of the VAT incurred on the construction costs.

Who is affected by this update?

UAE nationals constructing new residences

What should affected businesses do now?

Review the updated list of eligible expenses for VAT refunds. Determine eligibility for a VAT refund on construction costs. Submit a claim for a VAT refund to the FTA. Maintain accurate records of construction costs and VAT incurred.

How can Noura Lawyers help?

Our partners advise on exactly this kind of regulatory change — brief us in three minutes via the contact page for a same business-day partner response.