Gulf News, 9 June 2026: The Federal Tax Authority (FTA) has launched a new initiative widening the range of construction expenses eligible for VAT refunds for UAE nationals building new residences, effective 1 January 2026.
The FTA confirmed that the expanded list of eligible expenses is expected to generate around Dh200 million in VAT savings for Emirati citizens, with average refunds of Dh25,000 per claim. The total value of approved refund claims is projected to exceed Dh1 billion in 2026, compared to Dh754 million in 2025.
Under the updated rules, UAE nationals can now claim VAT refunds on a broader set of construction‑related costs directly connected to their homes, including:
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Staff accommodation for watchmen, drivers, and domestic workers
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Home gyms and game rooms
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Smart home and security systems
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Electronic and smart doors for homes and garages
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Swimming pools, fountains, landscaping
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Complete reconstruction projects including demolition and rebuilding
The FTA stressed that these features must be part of the residential property, built on the same plot of land, and directly connected to the main residence to qualify.
To raise awareness, the authority will organise information sessions at local district councils, allowing citizens to learn about the initiative and share feedback. The FTA’s digital VAT refund platform has also been updated to include the new categories, making applications easier and more transparent.
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