|22 January, 2020

Online facility to reclaim VAT on new homes in UAE

The number of original documents that need to be submitted with the application has been reduced

Image used for illustrative purpose. Dubai Marina Urban Skyline.

Image used for illustrative purpose. Dubai Marina Urban Skyline.

Gettyimages
The UAE Federal Tax Authority (FTA) has launched a new and enhanced platform on its website to further streamline the process of recovering value-added tax (VAT) incurred by citizens on the building of new homes.
 
Citizens who qualify for VAT recovery on newly built homes will receive an email with a request to submit the necessary documents to complete the processing. After verification of the documents, the citizen is notified of his/her entitlement. If the refund amount matches the tax invoices provided, then – following final approval the refund amount is transferred to the applicant’s bank account, said a Wam news agency report.
 
In a press statement, the authority explained that the platform’s most notable new feature is that it allows applicants to apply for the VAT refund online by using the e-Services feature on the FTA website, instead of having to mail applications, as was the previous procedure. It noted that this would save time and expedite the VAT recovery process.
 
Furthermore, the number of original documents that need to be submitted with the application has been reduced to just four and include a copy of the applicant’s family book, a copy of the applicant’s Emirates ID, a building permit included in the certificate of completion issued by the municipality, and a document indicating the date from which the building has been occupied (e.g. an invoice for setting up electricity and water services).
 
The FTA’s statement asserted that the new platform offers faster and easier procedures – particularly for applications that include an expenses certificate from a housing programme that adopts the Authority’s procedures and provides the required expenses data. Emirates Development Bank is the recognised agency for the time being but the FTA is working to expand the list of housing programmes.

Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From GCC