The Federal Tax Authority (FTA) continues to see robust outcomes from its digital VAT refund techniques for eligible classes, sustaining excessive ranges of accuracy and operational effectivity all through 2025. The FTA right this moment revealed the outcomes of those techniques for the primary half of the 12 months, together with the VAT refund system for brand spanking new residences for UAE nationals and the VAT refund system for vacationers.
The FTA introduced that, because the launch of the service roughly eight years in the past and up till June 2025, the full variety of accredited functions for VAT refunds associated to new residences for UAE nationals reached roughly 38,000, amounting to a complete worth of AED 3.2 billion. This marks a major enhance from the 31,000 accredited functions valued at AED 2.54 billion by June 2024, reflecting a 22.74% development within the variety of functions and a 25.72% enhance within the worth of refunds inside the previous 12 months.
The FTA additionally highlighted that greater than 7,000 new functions for VAT refunds for UAE nationals constructing new residences have been accredited between June 2024 and June 2025, amounting to AED 653.1 million. Moreover, within the first half of 2025 alone, 3,097 new functions have been accredited, leading to refunds totalling AED 284.77 million.
Digital Tax Refund System for Vacationers
The FTA highlighted the continued important enlargement of the digital tax refund system for vacationers, because the variety of retail retailers electronically linked to the system noticed constant development throughout all emirates. By the top of June 2025, the variety of shops registered with the Authority and linked to the system had elevated to 18,410 retailers, in comparison with 17,720 retailers by the top of 2024 and roughly 17,080 retailers by June 2024.
The FTA additional famous that 697 shops linked to the system within the first half of 2025, up from 540 shops throughout the identical interval in 2024, marking a rise of over 29%. This brings the full variety of shops which have joined the digital tax refund system for vacationers prior to now two years, together with the primary half of 2025, to three,390 shops.
With regard to the self-service machines that absolutely automate the tax refund course of for vacationers departing the nation in roughly two minutes per transaction, which can be found at main procuring malls, lodges, and departure factors for vacationers, the variety of these machines reached 96 by the top of June.
His Excellency Khalid Ali Al Bustani, Director Common of the FTA, stated: “The indications mirror the continuing improvement and improve of our digital techniques consistent with international greatest practices, and in alignment with the UAE’s digital transformation technique. The Authority’s initiatives on this regard have positively impacted the general high quality and efficiency of its providers, notably the digital VAT refund techniques for eligible classes.
“Notable examples embody the tax refund providers for brand spanking new residences for UAE nationals and VAT refund for vacationers, which have undergone steady enchancment to streamline and expedite the refund course of.
“Among the many key initiatives on this space is the ‘Maskan’ good software, which reinforces the convenience and comfort of VAT refunds for UAE nationals, and depends on paperless procedures with 100% absolutely digitised procedures.”
Al Bustani added: “As a part of its efforts to develop digital providers, FTA launched final December the world’s first e-commerce purchases VAT refund system for vacationers throughout their keep within the UAE, supporting the UAE’s management in all sectors, together with the tourism sector and the e-commerce sector, in continuation of what has been achieved on this area, the place greater than two years in the past the Authority launched the digital VAT refund system for vacationers, which relies on 100% paperless procedures and is consistently up to date, and offers a digital platform that enables vacationers to scan their passports simply, and robotically share their transactions as digital invoices, examine their invoices by the consumer portal for a seamless procuring expertise, and obtain a refundable tax credit score for his or her purchases in a handy and absolutely digitalised method.”
His Excellency burdened that the Authority would proceed to launch and implement varied initiatives and initiatives within the area of digital transformation within the tax sector to maintain tempo with the federal government’s digital transformation technique positioned for all providers based mostly on easy and proactive digital infrastructure, supporting efforts to scale back forms and preserve excessive ranges of buyer satisfaction.
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