The United Arab Emirates has announced an expansion of its VAT refund program for citizens constructing new homes, introducing a wider range of eligible expenses that can now qualify for tax refunds. The updated policy, introduced by the Federal Tax Authority (FTA), is designed to ease the financial burden on homeowners and support the country’s broader housing and development goals.
Under the revised framework, homeowners will be able to claim VAT refunds on additional construction-related costs, including smart home technologies, security systems, swimming pools, landscaping works, staff accommodation, and even certain reconstruction expenses. The FTA estimates that the enhanced scheme could generate average savings of approximately Dh25,000 per application, with overall VAT savings projected to reach Dh200 million. The new rules will apply to eligible applications submitted from January 2026 and will be supported by an upgraded digital platform aimed at making the refund process faster, simpler, and more accessible for citizens.
