How Can UAE Nationals Claim VAT Refunds for New Homes via the New Maskan App?

I come across many clients who are still confused regarding the application of the VAT on the construction of the new home in the UAE. There is a majority of the citizens in the UAE who are still unaware of the provision of claiming the VAT incurred on the construction of the new homes in the UAE. The clients who approach CDA and me are still stuck with the procedures that are to be followed to file for the VAT refund, and also, they don’t have an idea of the products or the services for which the VAT could be claimed back. In this blog I have included some of the common queries asked by the clients.

The UAE FTA, from the day of the implementation of the VAT, has been making all the efforts to reduce the tax burden on the registrants and has introduced all the possible options to make the registration, return filing, and de-registration processes simpler and quicker. The Maskan app is one such solution that FTA has introduced whereby the individuals now don’t have to worry about the paperwork and the complex procedures. 

Who is eligible for the VAT refund? 

As per the new amendment, the UAE nationals are eligible for the refund where the private residence is being constructed with the motive of occupation and not for any other commercial purposes. It must include the kitchen, bedrooms, washrooms, and some certain extensions.

If you are looking for a VAT consultants in Dubai, contact CDA now. 

What are the qualifying costs that can be applied for a refund?

As per the new amendment, the construction costs are inclusive of the construction materials and the related services, which are required for the construction of the new home.

What is the deadline for the application of the VAT refund?

The refund application must be made within the 12 months of the completion of the new home via the Emaratax portal or the Maskan app.

What are the common errors that must be avoided while filing for the refund?

The FTA has highlighted some of the common mistakes that could result in the delay in the refund process; some of these include the following:

• Lack of bank confirmation and letters.

• Missing documents that are related to the refund.

• Missing power of attorney document, etc.

How can UAE nationals claim the refund via Maskan app?

The Maskan app introduced by the FTA is one of the best services introduced for the UAE nationals, which has made the application for the VAT refund on a new home much easier and smoother than before. The procedures that must be followed to apply for the refund would include the following:

• The individual must first log in to the app via UAE Pass, which ensures fast access to the app and also keeps the security of the personal data.

• The second step would include the details that must be provided, the plot number, the location of the property, and the completion certificate of the property, whereby confirming the construction of the new home has been completed.

• The next step includes the invoices that have been received from the suppliers. The invoice must contain all the required details and must be related to the construction of the new home. The individuals can include the invoices via scanning them; hence, they would directly link them to the claim.

• The suppliers can also link your project by scanning the unique project barcode, whereby their invoices would also be included in the app and would be linked.

• The next step would include the calculation of the total eligible expenses based on the invoices included and would provide a rough estimate of the VAT refund amount applicable.

• Once all the documents and related invoices are reviewed and included, then it can be submitted through the app, which would then be reviewed by the FTA.

What are the major documents that should be maintained while applying for the refund via the Maskan app?

In order to get the refund process to be successful and to avoid any delays, the UAE nationals must ensure that the following documents are maintained and are submitted as per the requirement:

• Emirates ID

• Building permit

• Certificate of completion

• All the related tax invoices

• IBAN certificate or letter

• Proof of ownership 

What is the total timeline for the approval of the refund?

In order to get the refund approved by the FTA via the Maskan app, it would take an average of 20 days if all the documents and invoices are accurate.

How can CDA assist you to get the VAT refund?

CDA has been providing the accounting and auditing services in UAE for clients more than a decade. The professional and internationally certified experts of CDA would assist the UAE nationals planning to construct the new homes to get the refund without any delay by ensuring the correct procedures are followed and the documents and invoices are maintained and by providing all the required assistance to ensure a smooth application for the refund. Our experts would assist you regarding all your tax requirements, including VAT and Corporate Tax.

To know more about the services, connect with our experts now!

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.