How UAE Nationals Can Claim New Home VAT Refunds Through Maskan App has become easier with the Federal Tax Authority’s Maskan application. By law, UAE citizens who are constructing a new home can reclaim the VAT (Value Added Tax) paid on the building materials and services employed in the building process after fulfilling necessary eligibility conditions. There’s a digital process that minimizes paperwork that helps obtain invoices during construction. The FTA (Federal Tax Authority) has specified that the service can be requested through Maskan and EmaraTax platforms.
For house owners, keeping accurate records right from the beginning can help simplify the refund process. Maskan will enable applicants to develop the housing project, input invoices generated during the construction process, calculate eligible expenses and file a refund request after obtaining the completion certificate. In addition, the FTA has added functionalities that automatically link invoices from registered suppliers to the owner’s account.
Who Is Eligible for the VAT Refund?
Eligible individuals for the VAT refund in the UAE include UAE citizens who are building their residential homes for their own use. To qualify for the VAT refund, the property must conform to specifications of a house inclusive of sleeping quarters, kitchens and restrooms. Moreover, some extensions may also qualify for VAT refund provided they are legally connected with the house. The key eligibility criteria are given below:
- The person applying must be a citizen of the UAE.
- The residence should be privately owned.
- It should be built for living in.
- The property cannot be used for business purposes.
- The home should contain a few bedrooms, a kitchen and toilets.
- Certain qualifying extensions may also be included.
What Costs Qualify for the VAT Refund?
An amount of VAT paid for construction material or work when constructing one’s new residence qualifies for a refund. Based on the source, construction costs include any materials used for building the home and services performed or provided for preparation of construction work. Therefore, applicants should maintain documents to confirm any purchases and services. The following categories of costs can qualify for the refund:
- Building materials that should be used to construct a new residence.
- Services performed or provided in connection with building the home.
- VAT on construction materials and construction services.
- Costs supported by relevant supplier tax invoices.
What Is the Deadline for Applying for the VAT Refund?
Eligible UAe nationals must apply for VAT refund within 12 months after the completion of their new home. The application can be submitted through the EmaraTax portal or the Maskan app. It is important for the applicants to remember the completion date and prepare documents in advance. However, here are some points to keep in mind regarding the deadline:
- Applications can be made 12 months after the completion of the new home.
- The claim can be submitted through the Maskan App.
- The EmaraTax portal can also be used for the claim.
- A completion certificate should be kept accessible.
- Relevant invoices and supporting documents should be ready before applying.
How Can UAE Nationals Claim the Refund Through the Maskan App?
Maskan app is facilitating the VAT refund process as it offers an entirely digital process for people seeking the services. First of all, the people need to access the service using UAE Pass. After that, they need to enter the details of the property, tell the information about the supplier invoices, and upload the necessary documents. After the validation of the information, the claim may be submitted to FTA for assessment. Below are the main steps that are involved in the process:
Login Via UAE Pass: Accessing Maskan app via UAE Pass for safe login while safeguarding personal data.
Entering Details of Property: Information should be entered in the application such as plot number, project address and completion certificate to establish the completion of construction.
Adding Distributor invoices: The invoices obtained from vendors should be uploaded before valid information can be entered pertaining to the new property.
Scanning Invoices: Users can scan invoices to instantly link them to the refund application.
Associating invoices with Suppliers: Associate invoice number with the relevant project by using the unique project barcode
Computing Amount Qualifying for Refund: The system calculates the qualifying expenses based on invoices.
Claim Submission: After confirming all the information is accurate, it can be submitted through the FTA office.
What Documents Are Required for the Maskan VAT Refund?
The applicants must have the appropriate documents in place beforehand to submit their VAT refund. Full documentation helps to avoid any delays during the assessment process as well as to provide support for expenditures stated in the application. The documents will include information on the identity, property, type of construction work, and banking information. The key documents include:
- Emirates ID
- Building Permit
- Certificate of Completion
- Appropriate Invoices
- IBAN Certificate or Bank Letter
- Proof of Ownership
What Common Errors Should Applicants Avoid?
The FTA has pointed out several problems that can delay the VAT refund process. In case of a missing document or crucial bank information not provided, applicants may suffer. Thus, making sure that the form and all other papers are correct before submitting them can help prevent unnecessary delays. Types of mistakes worth avoiding include:
- Missing bank confirmation or significant bank letters.
- Not submitting the relevant documentation for the refund.
- Missing a necessary power of attorney document.
- Filing insufficient supporting information.
- Not keeping the relevant invoices and documents.
How Long Does FTA Approval Take?
On average, the Federal Tax Authority takes 20 days to approve Value Added Tax (VAT) refund applications through the Maskan App as long as the documents and invoices sent in are correct. It is therefore the applicants responsibility to check their information carefully before sending it in and ensure that the supporting documents count. The process can be summarised as follows:
| Stage | Details |
| Preparation | Collect the required documents and invoices |
| Application | Enter property details and add supporting records |
| Invoice Review | Check and link eligible supplier invoices |
| Submission | Submit the completed claim through Maskan |
| FTA Review | FTA reviews the submitted information |
| Average Approval Time | Around 20 days when documents and invoices are accurate |
How Does the Maskan App Make the Refund Process Easier?
The Maskan App is a digital service that provides UAE residents with a way to handle VAT refund requests. Users can input their property data, scan receipts and connect the supplier receipts information through the project barcode, enabling them to see the estimated refund amount even before submitting a claim. Such features eliminate the need to deal with complicated paperwork. The app is designed to help the applicants by allowing them to:
- Access the application using the UAE pass.
- Provide information about the property and date of completion.
- Scan relevant invoices.
- Link supplier invoices using project barcode.
- Calculate eligible expenditures.
- Know the estimated VAT refund amount.
- Submit the completed request to the Federal Tax Authority.
What Should UAE Nationals Do Before Filing the Claim?
It is recommended that all UAE nationals have all required information before entering into the application process. Therefore, the applicants must have all required data available. The documents needed include information of the property, certificate of completion, invoices, bank details and similar documents proving ownership. It is necessary to file the application within 12 months after completion of the home. Before submitting the application, UAE nationals should:
- Check whether the residence complies with eligibility criteria.
- Prepare the completion certificate and the building permit.
- Collect all required tax invoices.
- Prepare documents proving ownership.
- Show the IBAN or the bank letter that will be needed later.
- Check the completeness of documents.
- Submit the claim within the required 12 month period.
Conclusion
How UAE Nationals Can Claim New Home VAT Refunds Through Maskan App shows how eligible citizens can apply for a refund on qualifying construction costs for a private residence. The Maskan application makes the entire process easier for anyone applying since it enables the users to enter their property details, attach invoices and send their claims through mobile. Citizens must also keep good records and apply for their subsidy within a year after finishing the house. Normal processing time for the approval from the Federal Tax Authority is around three weeks when the paperwork is in order.
