Claim VAT spent on your new residence

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.

[sc name=”disclaimer”][/sc]
Share this article
This information summary is provided for general awareness purposes only and is not intended to replace an accounting, tax, or professional advice. Please seek professional advice before making any decision. We assume no liability or responsibility for any errors, omissions, or inaccuracy in this content.