The UAE Federal Tax Authority has broadened the range of construction costs eligible for VAT refunds for citizens building new homes, effective 1 January 2026. The initiative covers items such as staff quarters, home gyms, smart home systems, swimming pools, and full reconstruction projects, and is expected to generate over AED 1 billion in approved refunds in 2026.
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Key Takeaways
The initiative expands eligibility to include staff quarters for watchmen, drivers, or domestic workers; home gyms and game rooms; integrated security and smart home systems; electronic or smart doors; swimming pools, fountains, decorative indoor water features; landscaping; and complete home reconstruction projects, including demolition and rebuilding costs.
The expanded eligibility applies to all VAT refund claims submitted on or after 1 January 2026.
They must submit VAT refund claims through the digital VAT refund platform, which has been updated to list the new eligible expense categories, and must meet all conditions, procedures, and supporting documentation requirements.
The initiative is expected to yield over AED 1 billion in approved refund claims in 2026, with an estimated AED 200 million in total VAT savings and an average refund of about AED 25,000 per claim.
Primary source
Read the full article at TradingViewThis summary was published on VATfaqs.com on 9 June 2026. It relates to VAT developments in UAE. The original source is TradingView.
