UAE tax authority issues $872mn VAT refunds to nationals building new homes
The authority approved approximately 38,000 applications for the residence refund scheme since its launch eight years ago.
This represents growth from 31,000 approved applications valued at AED2.54 billion recorded by June 2024.
UAE Federal Tax Authority approves 38,000 residence VAT refund applications worth AED3.2bn
Between June 2024 and June 2025, the FTA approved more than 7,000 new applications worth AED653.1 million.
In the first six months of 2025 alone, 3,097 applications received approval, generating refunds totalling AED284.77 million.
The data shows a 22.74 per cent increase in application numbers and a 25.72 per cent rise in refund values over the past year.
The digital tax refund system for tourists expanded to include 18,410 retail outlets by June 2025, compared with 17,720 outlets at the end of 2024 and approximately 17,080 outlets by June 2024.
During the first half of 2025, 697 outlets connected to the system, representing a 29 per cent increase from the 540 outlets that joined during the same period in 2024.
Over the past two years, including the first half of 2025, 3,390 outlets have joined the tourist refund system.
The authority operates 96 self-service machines that process tourist tax refunds in approximately two minutes per transaction. These machines are located at shopping malls, hotels, and tourist departure points.
'The indicators reflect the ongoing development and upgrade of our digital systems in line with global best practices, and in alignment with the UAE's digital transformation strategy. The Authority's initiatives in this regard have positively impacted the overall quality and performance of its services, particularly the digital VAT refund systems for eligible categories,' Khalid Ali Al Bustani, Director General of the FTA said.
Al Bustani highlighted the 'Maskan' smart application, which processes VAT refunds for UAE nationals through paperless procedures with fully digitised operations.
The FTA launched the world's first e-commerce purchases VAT refund system for tourists in December 2024.
The system allows tourists to claim refunds on online purchases made during their stay in the UAE.
'As part of its efforts to develop digital services, FTA launched last December the world's first e-commerce purchases VAT refund system for tourists during their stay in the UAE, supporting the UAE's leadership in all sectors, including the tourism sector and the e-commerce sector,' he added.
The digital platform enables tourists to scan passports, share transactions as digital invoices, check invoices through a shopper portal, and receive refundable tax credits through fully digitalised procedures.
Al Bustani confirmed the authority would continue implementing digital transformation projects in the tax sector to support the government's strategy for reducing bureaucracy and maintaining customer satisfaction levels.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
6 minutes ago
- Khaleej Times
Look: Inside Sharjah's red sand Faya desert that holds 210,000 years of history
Beneath the vast, rust-coloured dunes of Sharjah's Al Faya desert lies an untold history of human resilience that stretches back an astonishing 210,000 years. Last week, this expansive landscape earned its place as a UNESCO World Heritage Site, the only Arab country to do so. The honour cements Al Faya's status not just as a regional marvel, but as a global testament to humanity's earliest struggles and triumphs in the face of an unforgiving climate. A desert that breathes history To stand in Al Faya is to walk in the footsteps of Palaeolithic hunters and Neolithic pastoralists who turned this arid expanse into a lifeline. The people first settled here because of water, and where there was water, there was life. Stay up to date with the latest news. Follow KT on WhatsApp Channels. The terrain is a dramatic mosaic of red-coloured sands, jagged rock formations, and fossilized riverbeds, which at some point in time was all under an ocean. Al Faya has archaeological layers that include 18 distinct strata, which were uncovered over 30 years by teams of archaeologists who have come from far and wide, revealing how humans adapted to climatic shifts between extreme aridity and fleeting rainy epochs. What sets Al Faya apart is its continuity. Unlike fragmented sites elsewhere, this landscape preserves a near-unbroken record of human activity. Flint tools, animal bones, and the very stones tell of hunter-gatherers who tracked gazelles and crafted weapons from the area's fine-grained stone. Actual findings by archaeologists can be found in the nearby museum. Later, pastoralists dug wells and herded livestock through the same valleys, their ingenuity etched into the earth. Echoes in the sand Today, visitors at Al Faya can trace these stories through its geology. It is important to note that some areas are designated as core zones, in which entrance is restricted to private tours. If you find yourself aboard one of those tours, be sure to visit the fossilized rock. Once wet, you may see evidence of these very rocks which were once upon a time, millions of years ago, under the water. At dawn, when the Sun stains the dunes crimson, it's easy to imagine a Palaeolithic family crouched near a fire, shaping tools under the same sky.
Khaleej Times
6 minutes ago
- Khaleej Times
New Dubai classification to remove ‘AI stigma' in content, experts say
Would you want to know if the content you're consuming was created using AI? A new initiative in Dubai is making that level of transparency possible. Industry professionals say it could help shift how people perceive artificial intelligence in creative work. As AI tools become increasingly embedded in industries from marketing to media, Dubai has introduced a Human–Machine Collaboration (HMC) classification system. Approved by Dubai Crown Prince Sheikh Hamdan, the new system uses visual icons to indicate the extent of human and AI involvement in producing content — be it for ideation, writing, design, or other stages. The aim is to enhance transparency across industries increasingly using automation and generative AI tools. Abeer Faisal, marketing specialist at Omorfia Group, said the classification could help reshape public perception of AI by encouraging honest disclosure. 'This kind of system helps take the stigma out of using AI,' she said. 'It gives marketers and creators a way to say, yes, AI was part of the process, but in a way that made the content better, not less authentic.' The system features five main icons — from 'All Human' to 'All Machine' — and nine functional tags that clarify which part of the process involved AI collaboration. Though it doesn't assign percentages to each input, the system offers creators a structured way reflect how intelligent machines were used in the process. Abeer believes it could also raise the bar on quality. 'It might feel like an extra step at first, but it's a step in the right direction. It encourages more conscious creation and that only improves the work,' she said, adding that in trust-driven sectors like PR, such labels could offer an added layer of credibility. She added that the labels could influence how audiences engage with content. 'Personally, if I started seeing those badges on posts, I'd probably pause and look closer. If it were something emotional or storytelling-heavy and labeled 'machine-led,' I might feel a bit disconnected. "But if it was something futuristic or data-driven, I'd respect the honesty. To me, the label doesn't define the content; the intention behind it does. And that's the shift we're heading into: people won't just care what you create, they'll care how you created it," she said. Senior communications specialist Rawan Khalifa echoed the sentiment, calling the initiative 'a commitment to transparency". She said the system acknowledges the growing role of AI in creative work, while also reinforcing the importance of how content is made. 'I've seen increasing concern about the decline of critical thinking skills as AI tools grow,' she said. 'To me, that's not a call to reject technology, it's a call to build AI literacy. We now have to upskill and use AI with intention, not default to it out of convenience.' She pointed out that the push for efficiency has sometimes led to suggestions of fully automating communications tasks, something she sees as risky. 'I've heard suggestions to fully automate some communications tasks under the guise of 'efficiency,' but even the best-written prompt can't replicate human judgment,' she said. 'Real communication isn't just producing content, it's about conveying meaning, and it requires judgment, nuance, and context.' Interestingly, Rawan shared that she used AI to refine her own quote — not to replace her voice, but to sharpen it. 'For communicators like myself, this doesn't just offer transparency, it protects the integrity of our work,' she said. However, not everyone expects widespread adoption right away. Nadine Al Suwaidi, a UAE-based digital strategist, said while the system is a positive step in principle, it may face hesitation in fast-paced commercial settings. 'The line between 'machine-assisted' and 'machine-led' can be blurry, and there's a lot of subjectivity,' she said. 'Unless there's clear incentive or pressure from clients or regulators, I don't think brands will rush to label their content this way.' She added that while the system may work well for government or academic institutions where documentation is critical, commercial teams are often more focused on timelines, performance, and simplicity. While the system is currently optional, Sheikh Hamdan has directed Dubai Government entities to begin adopting it in their research and knowledge-based work.
Dubai Eye
38 minutes ago
- Dubai Eye
FTA announces AED 3.2B in tax refunds for UAE homebuilders
The Federal Tax Authority (FTA) continues to see strong results from its digital VAT refund systems for eligible categories, maintaining high levels of accuracy and operational efficiency throughout 2025. On Sunday the FTA revealed the results of these systems for the first half of the year, including the VAT refund system for new residences for UAE nationals and the VAT refund system for tourists. The FTA announced that, since the launch of the service approximately eight years ago and up until June 2025, the total number of approved applications for VAT refunds related to new residences for UAE nationals reached approximately 38,000, amounting to a total value of AED3.2 billion. This marks a significant increase from the 31,000 approved applications valued at AED2.54 billion by June 2024, reflecting a 22.74% growth in the number of applications and a 25.72% increase in the value of refunds within the past year. They also highlighted that more than 7,000 new applications for VAT refunds for UAE nationals building new residences were approved between June 2024 and June 2025, amounting to AED653.1 million. Furthermore, in the first half of 2025 alone, 3,097 new applications were approved, resulting in refunds totalling AED284.77 million. The FTA highlighted the continued significant expansion of the digital tax refund system for tourists, as the number of retail shops electronically linked to the system saw consistent growth across all emirates. By the end of June 2025, the number of outlets registered with the Authority and connected to the system had increased to 18,410 shops, compared to 17,720 shops by the end of 2024 and approximately 17,080 shops by June 2024. The FTA further noted that 697 outlets connected to the system in the first half of 2025, up from 540 outlets during the same period in 2024, marking an increase of over 29%. This brings the total number of outlets that have joined the digital tax refund system for tourists in the past two years, including the first half of 2025, to 3,390 outlets. With regard to the self-service machines that fully automate the tax refund process for tourists departing the country in approximately two minutes per transaction, which are available at major shopping malls, hotels, and departure points for tourists, the number of these machines reached 96 by the end of June. Khalid Ali Al Bustani, Director General of the FTA, said, 'The indicators reflect the ongoing development and upgrade of our digital systems in line with global best practices, and in alignment with the UAE's digital transformation strategy. The Authority's initiatives in this regard have positively impacted the overall quality and performance of its services, particularly the digital VAT refund systems for eligible categories. 'Notable examples include the tax refund services for new residences for UAE nationals and VAT refund for tourists, which have undergone continuous improvement to streamline and expedite the refund process. 'Among the key initiatives in this area is the 'Maskan' smart application, which enhances the ease and convenience of VAT refunds for UAE nationals, and relies on paperless procedures with 100% fully digitised procedures.' Al Bustani added, 'As part of its efforts to develop digital services, FTA launched last December the world's first e-commerce purchases VAT refund system for tourists during their stay in the UAE, supporting the UAE's leadership in all sectors, including the tourism sector and the e-commerce sector, in continuation of what has been achieved in this field, where more than two years ago the Authority launched the digital VAT refund system for tourists, which is based on 100% paperless procedures and is constantly updated, and provides a digital platform that allows tourists to scan their passports easily, and automatically share their transactions as digital invoices, check their invoices through the shopper portal for a seamless shopping experience, and receive a refundable tax credit for their purchases in a convenient and fully digitalised manner.' He stressed that the Authority would continue to launch and implement various projects and initiatives in the field of digital transformation in the tax sector to keep pace with the government's digital transformation strategy placed for all services based on smooth and proactive digital infrastructure, supporting efforts to reduce bureaucracy and maintain high levels of customer satisfaction.
