The Federal Tax Authority (FTA) has launched a new initiative expanding the scope of VAT refunds for UAE nationals constructing new residences. Coinciding with the "Year of Family," the move aligns with leadership directives to support social stability, encourage family growth, and alleviate financial burdens.

The expansion is projected to save citizens roughly AED 200 million in VAT, averaging about AED 25,000 per claim. Total approved refund claims for 2026 are expected to surpass AED 1 billion, up from approximately AED 754 million in 2025. Retroactively active for claims submitted on or after January 1, 2026, the digital VAT refund platform has already been updated with the new categories.

Director General His Excellency Abdulaziz Al Mulla explained that nationals can now claim refunds on specific expenditures that form an integral part of the residence. Newly eligible items include staff quarters, home gyms, game rooms, smart home and security systems, automatic garage doors, swimming pools, landscaping, and even complete demolition and rebuilding costs. To qualify, these features must be built on the same plot and directly serve the primary residence. To raise awareness, the FTA will host discussion sessions at local district councils across the UAE.