Arabian Business, 26 January 2025: The UAE has made significant progress in its tax refund initiatives, granting $790 million in VAT refunds to nationals constructing new homes and unveiling VAT waivers for tourists.

The Federal Tax Authority (FTA) has highlighted the success of its digital VAT refund systems, which have been enhanced through ongoing digitalisation efforts.

Since the inception of the VAT-refund service for UAE nationals building new residences, 34,900 applications have been approved, amounting to AED2.9 billion ($790 million).

This marks a notable increase from the previous year’s figures, with a 27.52% rise in approved applications and a 32% increase in refund value.

In 2024 alone, 7,520 applications were approved, totaling AED704.38 million ($192 million).

The growth trajectory is evident when compared to previous years, with applications rising from 270 in 2018 to 8,250 in 2023.

The FTA has also expanded the digital VAT-refund scheme for tourists, with the number of registered retail outlets growing to 17,847 by the end of 2024.

This expansion includes the addition of 1,490 new retailers in 2024, contributing to a total of 3,008 outlets over two years.

The FTA is committed to enhancing the tourist experience by increasing the number of self-service kiosks for tax refunds, which now total 97 across major shopping malls, hotels, and airport terminals.

These kiosks process transactions in under two minutes, reflecting an 18.3% increase from the previous year.

The authority has emphasised its dedication to advancing digital systems in line with global best practices and the UAE’s digital transformation strategy.

The FTA plans to continue launching projects in 2025 to further streamline tax services, reduce bureaucracy, and enhance customer satisfaction.

For more news and content, try Lexis Middle East. Click on lexis.ae/demo to begin your free trial of Lexis® Middle East platform.

You can also explore the legal landscape by subscribing to our Weekly Newsletter.

Want to learn more about Lexis® Middle East? Visit https://www.lexis.ae/lexis-middle-east-law/.