UAE Issues Guidance On Reclaiming VAT On New House Builds

by Lorys Charalambous, Tax-News.com, Cyprus

22 May 2018

The United Arab Emirates' Federal Tax Authority has issued guidance on obtaining refunds of value-added tax (VAT) on new homes.

Emirati nationals who incur VAT when building a residence for their exclusive use are entitled to a refund of VAT provided the VAT relates to construction costs.

An application for refund of VAT should be made online. The first stage involves downloading, completing, and submitting a VAT refund form to the Authority within six months of completion of the construction works. Applicants who are entitled to a refund will be issued with a reference number.

Applicants must then submit a VAT refund request, including the reference number, blueprints, and invoices to a verification body accredited by the Authority, with an announcement of such to be posted on the Authority's website.

The verification body will then issue a "Verification Report" stating the amount of taxes paid versus the recoverable amount and send this to the Authority. The Authority will then process the final VAT refund request.

No fees apply for VAT refund applications.

A comprehensive guide on the VAT refund procedure is available in Arabic on the Authority's website.

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