Can UAE nationals reclaim VAT on building a new home?
Yes. A UAE national who builds or commissions a new residence on land they own can claim back the VAT paid on contractor services and building materials. The FTA real estate guide requires the home to be used solely by the person or family, and the claim must reach the FTA within 12 months of completion.
What can be claimed
Services of builders, architects, engineers and similar contractors needed to build the home, and building materials normally incorporated into a residence. Incorporated goods include central air conditioning, doors, fire alarms, flooring other than carpets, fitted kitchens, sanitary ware, showers, windows and embedded wiring. Appliances, loose furniture and landscaping are excluded.
What disqualifies a claim
Using the building for anything other than the family residence, such as a hotel, guest house or clinic. Claims are made only by a natural person who is a UAE national, through the FTA eServices portal.
What contractors should give the owner
The owner needs valid tax invoices from each contractor. Contractors who issue clear invoices separating incorporated materials from appliances and furniture make the claim easier. SupaJack Construct's progress invoices carry the TRN, the certified value and the VAT on each certificate.
Related tools and guides
See the VAT guide for contractors, the VAT calculator, the payment certificate calculator, the retention calculator, finance and VAT in SupaJack Construct, the answer on whether a payment certificate triggers VAT and the meaning of e-invoicing.
Worked example
An Emirati family builds a villa. The contractor's invoices total AED 1,600,000 plus AED 80,000 VAT, and fixed materials bought directly carry another AED 6,000 VAT. Furniture VAT of AED 4,000 is excluded. The family can claim AED 86,000 within 12 months of completion.
Questions people ask
Can a non-national claim?
No. Only a natural person who is a UAE national.
Is the deadline from the last invoice?
No, 12 months from completion of the residence.
Are kitchen appliances included?
No. Appliances are excluded.