The Federal Tax Authority (FTA) has launched a new and improved platform on its website to similarly streamline the process of recovering Value Added Tax (VAT) incurred by UAE residents on the constructing of new homes.
The authority clarified that its new platform is characterised by ease of use via certainly defined steps and easy procedures. Citizens who qualify for VAT recovery on new-build houses will get an e-mail with a request to submit the essential documents to finish the processing. After verification of the documents, the citizen is notified of their entitlement. If the refund amount suits the tax invoices provided, then – following last approval - the refund amount is transferred to the applicant’s bank account.
In a press declaration issued on 21 Jan 2020, the Authority announced that the new platform has been equipped in accordance with the ultra-modern standards to make sure efficiency, speed, ease, and clarity of procedures. The FTA published that it had conducted a sequence of consultation meetings with UAE residents looking for to recover VAT incurred on constructing new homes, as well as Tax Agents. The meetings sought to gauge the participants’ opinions and experience with the old tax reclaim procedure, where their input was taken into account with the sketch of the new platform.
The Authority defined that the platform’s most remarkable new feature is that it allows applicants to apply for the VAT refund on newly built residences by UAE nationals online by using the e-Services feature on the FTA website, instead of having to mail the applications, as was the previous procedure. It mentioned that this will both save time and expedite the VAT recovery process.
Furthermore, the number of authentic documents that ought to be submitted with the application has been reduced to simply four documents, the FTA asserted, citing contractor/consultant authorisation and passport as examples of documents no longer required for the process. The application form itself has also been simplified.
The 4 documents that now ought to be submitted with the application are: a copy of the applicant’s family book, a copy of the applicant’s Emirates ID, a building permit included in the certificate of completion issued with the aid of the Municipality, and a document indicating the date from which the building has been occupied (e.g. an invoice for setting up electricity and water services).
The FTA’s statement asserted that the new platform provides quicker and simpler methods – in particular for applications that encompass an expenses certificate from a housing programme that adopts the Authority’s tactics and offers the required expenses data. Emirates Development Bank is the acknowledged agency for the time being however the FTA is working to extend the list of housing programmes that enforce the procedures required by the Authority in order to increase the range of citizens who gain from this service.
FTA Director General His Excellency Khalid Ali Al Bustani said: “Launching the online platform to recover VAT on the construction of new homes for UAE citizens is part of the Authority’s method to give best-in-class services and constantly revise executive procedures for tax legislation to make sure efficient performance, facilitate procedures, and reap consumer satisfaction among citizens, residents, and visitors.”
“The FTA is dedicated to engaging all those involved in developing tax processes. With that in mind, we set out to seek advice from with citizens who have recovered – or are looking to recover – the VAT they paid for constructing their new homes, as well as with Tax Agents. Their views and experience with the old processes were taken into account in improving the platform,” H.E. added.
“The Federal Tax Authority welcomes and values remarks from customers,” H.E. Al Bustani asserted. “The new online platform was launched to enforce the vision of our smart management to improve a cutting-edge housing system for UAE citizens, and grant them with stability and a best quality of life. The Authority sought to make sure all procedures on the new platform had been clear, transparent, and simple, rushing up the method of reclaiming VAT for UAE citizens who are legally eligible to do so.”
“The Authority collaborates with housing programmes that apply its procedures and required expenses information to minimize the necessities for processing requests from citizens looking to recover VAT incurred on the building of new homes, where these entities give the essential assurances for applications,” H.E. explained. “The FTA is working to expand the listing of housing programme it collaborates with on this projects to allow more UAE nationals to gain from the ‘fast processing’ service the new platform offers.”
In their meetings with the FTA representatives, Tax Agents stated they have been pleased with the amenities the new platform offers, stressing that the programme to allow UAE residents to recover VAT incurred on constructing new houses has had excellent positive outcomes since it was brought in 2018. It has helped increase tax compliance among suppliers and those involved in the contracting and construction sectors, most of whom developed their administrative and accounting systems to be in a position to give the required documents after their commitment to implement tax legislation.
The Federal Tax Authority called on citizens wishing to recover the taxes they incurred on the construction of their new houses to review the tenet the FTA had issued this month (January 2020), which are reachable thru the FTA official website. The manuals provide a simple yet complete explanation of the steps that need to be observed to locate, fill, submit, and track the VAT recovery request form.
The Authority asserted that UAE residents who construct their houses have the right to put up a request for a refund of the VAT, with this request desiring to be received by the Authority within six months from the date of completion of the newly build residence.
The FTA explained that applications that include an expenses certificate from a housing programme that gives information about the required expenses data are processed more quickly. The Authority advised citizens submitting VAT refund requests to verify the accuracy of the data and information that are included in these requests to make sure all procedures are carried out within the particular timeframes.
FTA statistics expose that the total number of requests submitted via UAE residents to recover VAT on the construction of their new homes has reached 1,474, allowing citizens to recover AED 84.07 million. This marks a huge increase from the last year, where the FTA received 539 applications claiming AED 23.74 million that had been approved by end of June 2019.