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.