UAE government grants AED 3.2 billion in VAT refunds to national homebuilders by June 2025
Federal Tax Authority Streamlines VAT Refund Processes with Digital Transformation
The Federal Tax Authority (FTA) in the United Arab Emirates has embarked on a significant digital transformation of its tax services, particularly focusing on Value Added Tax (VAT) refund processes for UAE nationals and tourists.
The FTA's digital transformation strategy is geared towards reducing bureaucracy, improving customer satisfaction, and keeping pace with the UAE government's broader digital transformation agenda.
As a result of these efforts, AED 3.2 billion in VAT refunds were issued to UAE nationals building new residences by June 2025, reflecting a strong uptake of digital refund services for this eligible category.
To simplify VAT refunds for UAE nationals, the FTA launched the 'Maskan' smart application, offering 100% fully digitized and paperless procedures that enhance convenience and efficiency.
For tourists, the FTA developed and continually improved a digital VAT refund system based on paperless transactions. Over 18,000 retail outlets are connected to this system as of June 2025, up from about 17,700 in late 2024. The digital system includes 96 self-service machines deployed at major malls, hotels, and departure points, automating tax refunds in about two minutes per transaction for tourists departing the UAE.
In December 2024, the FTA launched the world’s first e-commerce purchases VAT refund system for tourists, allowing tourists to claim VAT refunds on online purchases made during their stay. This system supports tourism and e-commerce sectors and integrates features such as passport scanning, automatic sharing of digital invoices, and a shopper portal for invoice checking—all in a fully digital environment.
The FTA's commitment to digital innovation is also evident in its efforts to establish cross-sector leadership and increase efficiency. The upgrades and automation of refund systems are aimed at achieving these goals.
Looking ahead, further transformation projects are expected from the FTA in 2025 and beyond, as the authority continues to leverage state-of-the-art digital solutions for VAT refunds, making the process faster, more convenient, and fully paperless for both UAE nationals and tourists, with ongoing plans to support sectors like tourism and e-commerce through innovation.
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With the FTA's digital transformation, the authority is aiming to enhance leadership in innovation, particularly in the realm of finance and business. This transformation, aimed at streamlining VAT refund processes, will bring about a transformation in the way UAE nationals and tourists experience tax services. Further, the FTA plans to continue these initiatives, supporting sectors like tourism and e-commerce through technology-driven solutions, ensuring a fully digital, fast, and convenient VAT refund process for all.[Source 1, 2, 3, 4]
