The digital systems in place for VAT refunds to eligible categories continue to perform well, achieving positive results throughout 2025 while maintaining high standards of accuracy and operational efficiency.
Among the systems reported by the Federal Tax Authority during the first half of the current year are the refund system for VAT paid on the construction of new homes for citizens and the VAT refund system for tourists.
In a recent press release, the authority revealed that the total number of approved applications from citizens for refunds on VAT paid for newly built homes has reached approximately 38,000 since the service began almost eight years ago, amounting to a total value of 3.2 billion dirhams by the end of June 2025.
This figure marks a significant increase compared to the end of June 2024, when the cumulative total of applications was about 31,000, valued at 2.54 billion dirhams. This indicates a rise of 22.74% in the number of approved applications and a 25.72% increase in the refunded amounts over the year.
The authority noted that during the period from the end of June 2024 to the end of June 2025, more than 7,000 refund applications for VAT related to new homes were approved, totaling 653.1 million dirhams, including 3,097 new applications in the first half of 2025 alone, which resulted in refunds amounting to 284.77 million dirhams.
Furthermore, the digital system for VAT refunds for tourists has seen significant expansion, as the number of retail stores connected to the system electronically across all Emirates increased. By the end of June 2025, the number of registered sales outlets linked to the system reached 18,410, compared to 17,720 stores at the end of 2024 and around 17,080 stores at the end of June 2024.
During the first six months of this year, 697 retail outlets were connected to the system, compared to 540 stores during the same period in 2024, representing an increase of over 29%. The total number of sales outlets that have joined the digital VAT refund system for tourists over the past two years and into the first half of this year has reached 3,390.
Additionally, the authority mentioned that the number of self-service devices for VAT refunds available for tourists leaving the country has reached 96 by the end of June 2025. These devices are located in shopping centers, hotels, and exit points from the country and complete transactions within approximately two minutes.
Khaled Ali Al Bustani, Director General of the Federal Tax Authority, stated that these indicators reflect the continuous development and modernization of digital systems in line with best practices, adhering to the country’s digital transformation strategy. He emphasized that the VAT refund service for new homes and the tourist refund service have undergone ongoing updates to simplify and expedite the refund processes. One of the highlights is the “Residence” smart application, which offers additional conveniences for citizens to reclaim their VAT through a completely digital and paperless process.
Al Bustani added, “As part of its efforts to enhance digital services, the authority launched last December the world’s first VAT refund system for tourists on their purchases made through e-commerce during their stay in the UAE, supporting the UAE’s leadership across various sectors including tourism and e-commerce.”
He also pointed out that over two years ago, the authority launched the digital system for tourist VAT refunds, which operates entirely paperlessly and undergoes continuous updates. This system provides a digital platform where tourists can easily scan their passports to complete their purchases, automatically sharing their transactions as digital invoices and validating their invoices through a shopper’s portal to ensure a seamless shopping experience for claiming refundable VAT on their purchases rapidly and entirely digitally.
The authority will continue to launch and implement various projects and initiatives in the digital transformation of the tax sector, in line with the government’s strategy for smart transformation of all services, focusing on smooth and proactive digital processes to support efforts in reducing bureaucracy and maintaining high levels of client satisfaction.