Claim VAT spent on your new residence

Where a UAE national owns or acquires land in the UAE on which he builds his own residence, he shall be entitled to make a claim to the FTA to repay the Tax on the expenses of constructing the residence [Executive Regulations article 66]

What is recoverable?

Such expenses can be claimed:

• Cost of construction and building materials normally used in a residential building but not including furniture or electrical appliances

• Unfitted appliances and furniture are excluded and can’t be claimed

How to claim?

The claim must be submitted to FTA within 6 months of the earlier of:

• The date of the completion certificate

• The date of occupation by the owner or his family

FTA Conditions to claim VAT

A claim will only be valid if all the following conditions are met

• The claimant must be a UAE national and cannot be a company

• The claim must be related to the construction of a new building for the claimant or his family

• The building must be for residential use only, it cannot be a hotel or hospital which includes residential accommodation

• The building must be built with the intention to be used solely as a residence for the occupant or his family (if occupant plans to use the house for a year and then rented out, it will not qualify for input VAT refund)

• If the last condition is breached the FTA may claim back any refunded input VAT.

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How can we help?

• Record keeping of all expenditures on a cloud accounting system.

• Clearly identify and record the refundable and non-refundable VAT

• Cloud storage for all legal, supporting documents, and contracts.

• Provide online and mobile app to the property owner to track overall expenditure and refundable VAT.

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