If you're a UAE national building your own residence, you're entitled to a VAT refund on specific construction expenses. This special refund is provided by the Federal Tax Authority (FTA) and can help reduce the financial burden of constructing your home. Here’s a breakdown of the key points you need to know:

Who is Eligible?

To qualify for the VAT refund, you must be a natural person, a UAE national, and hold a Family Book.

What Expenses are Reclaimable?

1. Usage of the Building:

The refund applies to newly constructed buildings that will be used exclusively as your private residence or for your family's use.

2. Nature of Expenses:

• Building Materials: These include materials that are typically used in residential construction, such as bricks, cement, and other foundational items. However, VAT on furniture and electrical appliances is not reclaimable.
• Contractor Services: This includes VAT on services provided by contractors such as builders, architects, engineers, and similar professionals essential for constructing the residence.
• VAT on transport costs and clearing agent fees related to the importation of building materials can also be reclaimed if these costs directly relate to the construction of your home.

Application Deadline

You must submit your Refund Request to the FTA within 12 months of completing your new residence. The completion date is considered the earlier of:

The date the residence is occupied.

The date it is officially certified as complete by a competent authority (e.g., when a Building Completion Certificate is issued).

Final Thoughts

This VAT refund is a significant benefit for UAE nationals building new residences, helping to ease the financial strain of construction. To ensure you don’t miss out on this opportunity, carefully track your expenses and submit your claim within the stipulated timeframe. For more details, don’t hesitate to contact me.

By understanding your eligibility and the nature of expenses that can be reclaimed, you can take full advantage of this beneficial scheme while constructing your dream home in the UAE.