UAE VAT Refund for New Homes: What Is Now Covered
The Federal Tax Authority (FTA) has expanded the list of expenses that qualify for VAT refunds when UAE nationals build a new home. The change applies to refund claims for Emirati home construction submitted on or after 1 January 2026. The FTA estimates the wider scope will save about Dh25,000 per claim on average and about Dh200 million in total. That is an average estimate, not a cap or a guaranteed payment, so your own refund depends on the VAT you paid on qualifying costs.
Who qualifies
The scheme is for UAE nationals building a new residence for their own use or their family’s, provided all criteria are met. The home must include basic cooking, bathroom and sleeping facilities, and it is generally limited to one refund per residence, with an exception for retention payments. Investment and commercial buildings are outside the scheme.
Newly eligible items
Each item must be an integral part of the new residence, built on the same plot and serving the main residence directly. The FTA’s list of additional refund items is:
- Staff quarters for watchmen, drivers or domestic workers
- Home gyms and game rooms
- Integrated security and smart home systems with built-in components
- Electronic or smart doors for the main residence and garage
- Swimming pools and fountains
- Decorative indoor water features
- Landscaping
- Complete home reconstruction, including demolition and rebuilding
Guidance for advisers adds that items must be embedded in the structure. Movable furniture, portable appliances, standalone decoration, loose play equipment and garden ornaments remain excluded.
How to claim
FTA services use UAE Pass login, and the FTA’s digital VAT refund platform has been updated with the new categories. For a private residence, the Maskan app can generate a refund application automatically once the municipality issues a building completion certificate or, where applicable, a building permit. Invoices from registered suppliers can populate automatically, so detailed tax invoices matter: vague descriptions make it harder to show that an item is eligible. Typical supporting documents include Emirates ID, family data, completion certificates, site plans, proof of ownership, contracts and variation orders.
If you have already claimed
Advisers recommend reviewing ongoing or past claims for items that are now covered. A voluntary disclosure may be needed if earlier claims were over- or understated.
About 4,000 UAE nationals received refunds in the first half of 2026, with applications totalling Dh353.5 million, up from 3,100 approved applications worth Dh284.8 million a year earlier.
