If you are planning to own a home, then it is important to know about the requirements set by the Federal Tax Authority to process a VAT refund for a new residence.
What are the criteria for claiming a VAT refund for a new residence?
You must be a UAE national
The capital under question must be financed on the construction of the new residence, and you must set it to be used only as residential units.
The VAT refund will be only on the money spent on establishing the unit.
You are asked to submit the request within 6 months from the completion date of the construction project, before the date of occupancy of the building or before the Authority certifies it as complete.
There won’t be any fees apply on request for VAT recovery on the construction of new housing units. But there will be fees charged by accredited Verification bodies in return to the service they provide.
The four steps to submitting the request for a VAT refund. You can submit the request only through online mode.
Download the VAT Refund Form from the FTA’s website www.tax.gov.ae
Fill the form duly, printed, and signed; handwritten documents will not be accepted
Along with the supporting documents, scan the form which is filled and signed and submit them in PDF format to homebuilders@tax.gov.ae within six months following the completion of the construction. Supporting documents include:
Copy of passport and Emirates ID
Paperwork to prove the ownership of the plot must also include the date of completion
After submitting the documents, the Authority will send you an email confirming the acceptance of the documents. Another email will be sent within 5 working days to inform whether eligible for a refund or not.
> Once if you are eligible, submit the request, including the reference number, blueprints, and invoices to a Verification body authorized by the FTA.
A Verification Report will be issued stating the amount of taxes paid versus the recoverable amount by the entities and it will be sent to FTA within 15 working days from the date the invoices were issued.
It will take 20 working days to process the final request and an extra 5 working days to refund the recoverable amount.
If you have any doubt regarding the VAT refund, call us 04 443 1604