Building new residences tax in the UAE

In the UAE, there is a tax refund system where you can refund the VAT paid when purchasing building materials for housing for individuals and companies who build housing and real estate in the country. It’s called The Value added tax (VAT). This system name was implemented in 2018.

The VAT is refunded on purchases of building materials for housing.
At a rate of 5%, by submitting a tax refund application to the Federal Tax Authority (FTA) in UAE.

Individuals and companies who wish to apply for a VAT refund, will be asked to provide the related invoices of purchasing building materials for housing, submitting applications, according to the FTA procedures.

It should be noted that individuals and companies must ensure that specific conditions and requirements for the VAT refund of purchases of building materials for residences in the UAE, can be viewed on the FTA website.

Individuals and companies planning to build housing or real estate in the UAE should check the regulations and laws in the area in which they intend to invest, and check the requirements necessary to build their project, including required fees and taxes and related administrative procedures.

What are the documents required to recover the housing construction tax?

You must prepare and include the following information in an appropriate format.
In your online application:

• copy of the applicant’s Emirates ID.
• copy of the applicant’s Family Book
• copy of the property completion certificate and building permit
• copy of your property site plan
• documentary proof to support that you own the plot of land in the UAE
• copy of the letter/certificate issued and stamped by your bank which includes details such as the account holder’s name, bank’s name and the IBAN
• other documentations to support the date the building is occupied (if required).
• Declaration form to be stamped by the court if the name is different from the bank account and the name of the applicant (if necessary).
• Other documents to support the building’s occupancy date (if required).
• Upload the taxpayer’s certificate if the type of tax refund is from. “Housing and Personal Fund Program”
• Upload supporting documents if the date of the Certificate of Completion is dated
on the application form (if required). More than 12 months
File types accepted PDF, JPG, PNG, JPEG, and Excel files. The maximum size of each file is 5 MB.

Tax Max is an authorized tax agent that provides many Tax-related services, including VAT refunds for residences.

VAT Refunds for residences services includes:

1- Preparing the refund application form, and preparing all the invoices and other required documents and submitting all forms to the FTA.
2- Reviewing financial records and tax records to ensure they are completed and up to date to comply with applicable laws and regulations.
3- Providing VAT consultations and all requirements for housing and real estate.
4 – Keeping the clients updated with all the latest laws and regulations regarding VAT.
5 – A letter of guarantee ensuring the quality of services Tax Max provides and taking full responsibility regarding any issues with the FTA.

Tax Max is an approved tax agent that provides many tax-related services, including residential refunds. Where they include:

Preparation and submission of refund requests: invoices and documents are analysed and requests for refunds are submitted to the Federal Tax Authority.
Assistance in the review of financial records: Financial and tax records are reviewed to ascertain their validity and ensure that they conform to applicable regulations and laws.
Tax consulting: Advice and advice on taxes and tax requirements for housing and real estate are provided.
Providing tax information: the registrar is provided with the necessary and periodically updated tax information.
Defending the client in case of inquiries from the Federal Tax Authority: Assistance is provided in responding to inquiries and providing necessary tax documents and information.
Individuals and companies can obtain Taxmax services by contracting them as a licensed tax services company in the United Arab Emirates as an authorized agent to ensure that you work as required by the regulations and laws stipulated by the relevant authorities.