UAE’s Federal Tax Authority simplifies VAT recovery on new-build homes

FTA launches a new platform to further streamline the process of recovering VAT incurred by UAE citizens on the building of new homes

The Federal Tax Authority (FTA) has launched a new platform to further streamline the process of recovering value added tax (VAT) incurred by UAE citizens on the building of new homes.

Citizens who qualify for VAT recovery on new-build homes will receive an email with a request to submit the necessary documents to complete the processing, the FTA said in a statement.

FTA statistics reveal that the total number of requests submitted by UAE citizens to recover VAT on the construction of their new homes has reached 1,474, allowing citizens to recover AED84.07 million.

This marks a significant increase from the previous year, when the FTA received 539 applications claiming AED23.74 million that were approved by end of June 2019.

After verification of the documents, the citizen is notified of their entitlement. If the refund amount matches the tax invoices provided, then, following final approval, the refund amount is transferred to the applicant’s bank account.

The move follows a series of consultation meetings with UAE citizens seeking to recover VAT incurred on building new homes, as well as tax agents.

It added that the number of original documents that need to be submitted with the application has been reduced to just four, citing contractor/consultant authorisation and passport as examples of documents no longer required for the process while the application form itself has also been simplified.

The four documents that now need to be submitted with the application are a copy of the applicant’s family book, a copy of the applicant’s Emirates ID, a building permit included in the certificate of completion issued by the Municipality, and a document indicating the date from which the building has been occupied.

Khalid Ali Al Bustani, FTA director general, said: “Launching the online platform to recover VAT on the construction of new homes for UAE citizens is part of the authority’s strategy to provide best-in-class services and continuously revise executive procedures for tax legislation to ensure efficient performance, facilitate procedures, and achieve customer satisfaction among citizens, residents, and visitors.”

Courtesy : arabianbusiness.com

https://www.arabianbusiness.com/banking-finance/438239-uaes-federal-tax-authority-simplifies-vat-recovery-on-new-build-homes