How UAE Citizens Can Reclaim Taxes on Building New Residences

Eligibility for Reclaiming Tax

To be eligible for reclaiming tax on building new residences, several conditions must be met:

• Citizenship: The claimant must be a UAE national.
• New Residences: The property must be a new home, not a renovation or extension of an existing property.
• Citizenship: The claimant must be a UAE national.
• Purpose: The new residence must be intended for personal use, not for commercial purposes.

Meeting these criteria is essential for the successful recovery of taxes.

Process of Recovering Tax on Building New Residence

Reclaiming tax on building new residences involves several steps. Here’s a straightforward guide to help you through the process:

1. Gather Necessary Documents

Before starting the process, collect all relevant documents. This includes:

• Proof of citizenship
• Building permits and approvals
• Invoices and receipts for all materials and services used in constructing the new home

Meeting these criteria is essential for the successful recovery of taxes.

2. Submit an Application

The next step is to submit an application for a VAT refund. This can typically be done online through the UAE’s Federal Tax Authority (FTA) website. The application will require detailed information about the construction project, including:

• The total cost of construction
• The amount of VAT paid
• Details of suppliers and contractors

Make sure to fill in all required fields accurately to avoid any issues with your application.

3. Await Processing

Once your application is submitted, it will be reviewed by the FTA. This process can take some time, so patience is essential. The FTA may request additional information or clarification on certain aspects of your application. Respond promptly to any such requests to keep the process moving smoothly.

4. Receive Your Refund

If your application is approved, you will receive a refund for the VAT paid on building your new residence. The refund will be credited to your bank account, reducing the overall cost of your construction project.

Introducing the ‘Maskan’ Application & How to Use for vat back on new build

The UAE government has launched the ‘Maskan’ app to streamline the VAT refund service on the construction of new homes. This innovative tool allows UAE citizens to handle the entire refund process digitally, removing the need for paper documents and reducing bureaucracy. The ‘Maskan’ app is designed to make reclaiming tax simple and efficient.

Here’s a step-by-step guide to help you use the ‘Maskan’ app and recover the VAT you’ve paid:

• Download the App:Start by downloading the ‘Maskan’ application from your app store. It’s available for both Android and iOS devices.
• Create an Account: Once downloaded, create your account on the app. You’ll need to provide some basic information about yourself and your new home project.
• Upload Your Invoices: After setting up your account, you can upload invoices related to the construction of your new home. The app allows you to attach photos or files of your tax invoices. Make sure these invoices clearly show the VAT amount paid.
• Submit Your Request: With your invoices uploaded, you can submit your refund request through the app. The digital process ensures that all required documents are in order and that your request is processed quickly.
• Track Your Refund: The ‘Maskan’ app lets you track the status of your VAT refund request in real-time. You’ll be notified once your refund is approved and transferred.

Click To download the Application:

Google Play Store iOS App Store

Tips for a Successful VAT Refund in UAE

To ensure a smooth and successful VAT refund process, keep the following tips in mind:

• Keep Detailed Records: Maintain organized records of all expenses related to the construction of your new home. This includes keeping all invoices, receipts, and any other documentation that shows VAT was paid.
• Use Registered Suppliers: Whenever possible, use suppliers and contractors registered with the UAE VAT system. This ensures that the VAT you pay is properly documented and recoverable.
• Check Eligibility: Before starting the construction, double-check that your project meets all eligibility criteria for a VAT refund. This can save time and prevent disappointment later.
• Seek Tax Consultant Advice: If you are unsure about any aspect of the VAT refund process, consider seeking advice from a tax consultant. They can provide guidance and ensure that your application is complete and accurate.

Benefits of Reclaiming Tax on New Homes in UAE

Reclaiming tax on building new residences offers several benefits for UAE citizens:

• Cost Savings: The most obvious benefit is the financial saving. Recovering the VAT can significantly reduce the overall cost of your new home.
• Encourages Home Building: By offering a VAT refund service, the government encourages citizens to build new homes, contributing to the country’s development.
• Financial Relief: Building a new home can be financially straining. Reclaiming tax provides some financial relief, making it easier for citizens to manage their budgets.

Maximize VAT Back on New Build House with BSD Prime Services

Reclaiming taxes on building new residences can be challenging, but BSD Prime Services Tax Consultants are here to help. Their expert guidance and professional assistance ensure a smooth and efficient VAT refund process. Let them help you navigate the complexities and maximize your savings, making your dream home more affordable.

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