UAE Citizens to Receive Expanded VAT Refunds for New Home Construction in 2026

The UAE government has confirmed an expansion of the Value Added Tax (VAT) refund scheme for citizens constructing new private residences, with the updated regulations set to take effect in 2026. The measure targets the reduction of construction costs for Emirati nationals building independent houses. New Eligibility and Timeline Adjustments Under the existing Federal Tax Authority (FTA) framework, UAE citizens are entitled to reclaim the 5% VAT paid on specific expenses related to the construction of their first home. The 2026 expansion is expected to broaden the criteria for eligible materials and services, while potentially extending the window for filing claims beyond the current six-month limit following the issuance of a building completion certificate. The refund process currently requires applicants to provide comprehensive documentation, including invoices and proof of citizenship. The expansion will integrate more closely with the EmaraTax digital platform to accelerate processing times and verify contractor data automatically against FTA records. Support for National Housing Goals The 2026 update follows a period of increased activity in the domestic housing sector.…