The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has taken a strong move towards financial empowerment and digital transformation. Actually, it has been reported that the UAE VAT Refund for the UAE nationals for creating new homes has reached Dh3.2 billion as of June 2025.
Since the launch of this policy, the number of applications approved has reached 38000 in just 8 years. This achievement showcases the ongoing goal of the UAE government to support Emiratis in ownership and simplify the errors related to tax through digitization.
Dh3.2 Billion Refunded to UAE Nationals: A 25% Year-on-Year Surge
According to the FTA, the overall value of refunds has increased from Dh2.54 billion in June 2024 to Dh3.2 billion in June 2025. In addition, it has marked a year-on-year growth of 25.7 percent. Moreover. The number of applications for the approved refund has also risen by 22.7 percent in the same period. It means that the same number has reached 38,000 from 31,000 during the same period of time.
The authority approved Dh284.77 million in VAT refunds during the first half of the year, processing 3097 applications. Surprisingly, more than 7000 new claims were approved between June 2024 and June 2025, which amounts to the refund of Dh653.1 million.
This initiative matches the objective of this nation to support its citizens in the residential development. Integration of the digital ease through the Muskan app (authority app) has made it easier to claim the UAE VAT refund. The app allows you to perform a paperless submission and real-time tracking of refund claims.
FTA Expands UAE VAT Refund System for Tourists: Over 18,000 Stores Now Linked
Apart from the support for the nationals, the FTA has also made significant progress in boosting the VAT refund system for tourists. By the end of June 2025, the UAE connected 18,410 retail outlets to the digital refund network. It was 17720 at the end of 2024 and 17,080 at the end of June 2024.
The first half of this year has seen the integration of 697 new outlets into the system. It shows a 27 percent increase as compared to 540 new additions during the same period in the previous year. Furthermore, 3390 outlets have joined this system in the last two years.
The FTA has taken more steps to ease the procedure of the UAE VAT Refunds. As per the authority, 96 self-service kiosks have been installed in key locations, like shopping malls, hotels, and airports. This facility will allow you to process your VAT Refunds within two minutes without the need for any paper-based documents.
New E-Commerce VAT Refund Platform: A Boost for Online Shopping Tourists
The FTA has also introduced a fully digital e-commerce platform for the VAT refund in December 2024, which is in line with its digital-first initiative. This new system will allow tourists to claim it on eligible shopping that they have made in the UAE.
As a tourist, you can now scan your passport, access the digital invoice, and track your claim through a dedicated online shopper platform. This move boosts clarity, efficiency, and convenience that align with the broader vision of the country to convert itself into a global tourism and e-commerce hub.
Digital Transformation Across All Tax Services
The FTA has repeats its commitment to ongoing digital transformation across all its platforms. Soon, it is expected to improve speed for refunds, accuracy in claims, and enhance the overall customer satisfaction.
The authority has also highlighted that these reforms support both residential and commercial stakeholders. In addition, this change could strengthen the reputation of the UAE as a digitally advanced and investor-friendly economy in the world.
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