More UAE tourists, citizens cash in VAT refunds with rise in kiosks, stores

Dubai: The Federal Tax Authority (FTA) has announced that VAT refunds for UAE nationals building new homes have crossed Dh3.2 billion as of June 2025, with over 38,000 applications approved since the programme launched eight years ago.

This marks a significant year-on-year increase from June 2024, when 31,000 refund applications worth Dh2.54 billion had been processed. The data reflects a 22.7% rise in the number of applications and a 25.7% increase in the refund value over the past 12 months.

Between June 2024 and June 2025 alone, more than 7,000 new refund claims were approved, amounting to Dh653.1 million. In the first half of 2025, 3,097 applications were cleared, resulting in Dh284.77 million in refunds.

The refunds are part of a long-running initiative to support UAE nationals constructing new residential properties, made easier through the Authority’s digital submission process and its ‘Maskan’ mobile app, which enables fully paperless transactions.

The FTA also reported continued growth in the number of retail outlets connected to its digital tax refund system for tourists, which automates the VAT claim process for eligible visitors.

As of end-June 2025, 18,410 stores across the UAE were electronically linked to the system—up from 17,720 stores at the end of 2024 and 17,080 stores in June 2024.

In the first half of 2025, 697 additional outlets joined the network, compared to 540 new outlets in the same period a year earlier—marking a growth of over 29%. The total number of new outlets added in the past two years has now reached 3,390.

The system also includes 96 self-service kiosks located at major malls, hotels, and airport terminals, allowing tourists to process VAT refunds in around two minutes without paper-based documentation.

The FTA also highlighted a fully digital e-commerce VAT refund platform launched in December 2024. This service enables tourists to receive VAT refunds for eligible purchases made online while staying in the UAE.

The system is paperless and allows tourists to scan passports, generate digital invoices, and track refund claims via a dedicated shopper portal. It is part of the UAE’s broader strategy to streamline government services and support sectors like tourism and e-commerce.

The FTA said it remains focused on digital transformation across all tax-related services, with continued upgrades planned to improve accuracy, speed, and customer satisfaction.