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According to the FTA (Federal Tax Authority), the Emiratis will have the right to recuperate the value added tax in UAE when building their own places to live in. However, three requirements have been set by the FTA along with a proper procedure for the citizens of UAE so that they could get a refund for the VAT which is going to be charged on new abodes. The conditions for refunding VAT are as follows:
VAT Refund Process An all-inclusive guide has been also released by the FTA – clarifying the whole UAE VAT refund procedure as it is also published on their official website. The authority clarified in a press released that the citizens of UAE have the total right to recuperate VAT when building their own homes. They also added that the citizens should submit a request in order to recover the tax which is incurred on the cost of residence’s construction from the FTA. However, there is a condition. The request should be submitted within the time period of six months – before the construction project gets completed, preceding the occupancy date of the residence or the date when the certificate of residence or a building’s completion gets issued by the proficient authorities or another date which is decided by the FTA. Soon, all accredited verification bodies will be announced by the authority on its official website as the government is also providing online UAE VAT registration system. An official document will be issued under the name of Verification Report. The Verification Report will show the total amount of all paid taxes versus the amount that is recoverable. Then, it will be sent to the FTA within the 15 days (working days) before the issuance date of invoices. However, the FTA can still take up to almost 20 days for proceeding the further process and 5 extra working days will be also required for refunding the recoverable amount of money to the applicant. Also, it is confirmed by the FTA that there will be no fees on the requests for the recovery of VAT — for the construction of new residential units. FTA also highlighted that accredited verification bodies might charge some fees in return for their provided services. Also Read About: VAT Refund System for Tourists in UAE 10 Year Residency Visas for Investors and Specialists in UAE
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7/22/2022 11:43:57 am
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