FTA has launched a new online platform for streamlining the input tax recovery process of VAT paid on building new homes. Registered taxpayers, who qualify for this scheme, will receive an e-mail requesting to submit the necessary documents.
As per the stats reports the total number of requests submitted by UAE citizens to recover VAT on the construction of their new homes has reached 1,474, allowing citizens to recover AED 84.07 million. Whereas, previously it was 539 applications claiming AED23.74 million by end of June 2019.
Upon receipt of the documents, the verification process starts. After verification of the documents, the citizen is notified of their 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.
This scheme is introduced with a series of consultation meetings with UAE citizens seeking to recover VAT incurred on building new homes, as well as tax agents. The new form has been very much simplified for the ease of the tax payers.
Documents that need to be submitted for recovery are:
- 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
- A document indicating the date from which the building has been occupied.