1. Introduction and Overview
This system was established to enable UAE Nationals to reclaim the Value Added Tax (VAT) paid on the costs of constructing their new private residences.
It applies exclusively to natural persons who are UAE citizens and is based on Federal Decree-Law No. 8 of 2017 on VAT.
2. Eligibility Criteria
Who can apply?
– A natural UAE citizen who owns land within the country and is building a private home for themselves or their family.
– Submission of the Family Book (Khulasat Al Qaid) is a mandatory requirement for application.
What is considered a “residence”?
A building used exclusively as a private home with complete living facilities (kitchen, bathrooms, bedrooms).
Commercial buildings such as hotel apartments, guesthouses, clinics, or offices are excluded.
3. Refundable VAT
Eligible expenses include:
– Services from engineers, contractors, laborers, and consultants
– Construction materials like bricks, cement, wood, flooring (excluding carpets)
– Electrical and plumbing works, air conditioning systems, built-in kitchens, shower units, doors, and windows
– Elevators, permanent fencing, alarm and security systems, and sewage systems
Non-eligible expenses include:
– Furniture, curtains, carpets, standalone electrical appliances
– Plants and landscaping, swimming pools, children’s play areas, smart entertainment systems
Note: VAT must be incurred on items that are permanently installed and used within the residence.
4. Application Process
When to apply?
Within 12 months from the date the residence is completed or occupied — whichever comes first.
Extensions may be granted in special cases such as health issues or legal disputes.
Required documents:
– Copy of Emirates ID and Family Book
– Certificate of Completion and Building Permit
– Site map, land ownership deed, and bank account verification
– Clear tax invoices issued in the applicant’s name
For withheld payments:
– A supplementary refund request can be submitted within 6 months of payment settlement.
5. General Notes
– The home must be used exclusively for personal residential purposes. Otherwise, the citizen may be required to repay the refunded VAT.
– Tax invoices must clearly include all necessary details such as the owner’s name, plot number, and VAT amount.
