In an effort to simplify the VAT refund process for UAE citizens constructing new homes, the Federal Tax Authority (FTA) has rolled out the second phase of the ‘Maskan’ application. This advanced digital platform is designed to streamline the process, making it more efficient and user-friendly. Here’s a guide on how UAE citizens can leverage this smart app to reclaim VAT on their new home construction.
Understanding the ‘Maskan’ Application
The ‘Maskan’ app was developed to offer UAE citizens a seamless way to recover the Value Added Tax (VAT in UAE) they incur while building their new homes. With its introduction, the FTA aims to provide a hassle-free, digital method to file and process VAT refund claims, eliminating the need for cumbersome paperwork and reducing the potential for errors.
Key Features of the ‘Maskan’ App
1. Digital Submission: Users can now submit their VAT in UAE refund applications entirely online. The app allows applicants to create their files, enter tax invoices related to construction supplies, and upload relevant photos and documents.
2. Barcode Scanning: The second phase, which went live in July 2024, includes a barcode scanning feature that simplifies entering tax invoices into the system. This reduces the risk of errors and speeds up the application process.
3. Unified Login and Personal QR Code: Applicants can access the app using their UAE PASS digital identity, ensuring secure login and data management. A personal QR code is generated for each applicant, allowing quick access to their tax data and enabling automatic calculation of eligible VAT amounts.
How to Reclaim VAT on House Build
1. Register for VAT UAE with UAE PASS: Before accessing the ‘Maskan’ app, ensure you have registered with UAE PASS, which will serve as your secure login method.
2. Create Your File: Log in to the ‘Maskan’ app and create your file by entering your personal and construction project details.
3. Enter Tax Invoices: Use the app to enter all relevant tax invoices. The barcode scanning feature makes it easy to input invoice details.
4. Upload Documents: Attach photos and any required documents that substantiate your claim. This might include purchase receipts, contracts, and other proofs of expenditure related to the construction.
5. Submit the Application: Review your entered data and documents, then submit your application through the app.
6. Track Your Application: The app allows you to track the status of your application in real-time, providing updates at each stage of the review process.
What VAT Can I Claim Back?
You can claim back VAT on expenses directly related to the construction of a new home. This includes:
- Construction services
- Building materials
- Architect and engineering fees
- Contractor services
- Utility connection services
What expense items are eligible for VAT Refund in UAE?
In UAE, the items eligible for VAT refund in the context of new home construction generally include:
- Construction materials such as bricks, cement, and timber.
- Professional services like architecture, engineering, and surveyor fees.
- Contractor fees for the physical building work.
- Interior finishing materials such as plaster, paint, and flooring.
- Installation services for utilities like water, electricity, and gas.
What expense items are not eligible for VAT Refund?
In UAE, the items not eligible for VAT refund in the context of new home construction generally include:
- Furniture which is not affixed to the building such as sofas, tables, chairs.
- Electrical and gas appliances, including cookers.
- Landscaping, such as trees, grass and plants.
- Free-standing and integrated appliances such as fridges, freezers, dishwashers, microwaves, washing machines.
- Audio equipment, built-in speakers, intelligent lighting systems, satellite boxes, Freeview boxes, CCTV, telephones.
- Electrical components for garage doors and gates
- Garden furniture and ornaments and sheds
- Swimming pools, Children play structures
How Do You Claim a Residential VAT Refund in UAE?
To claim a residential VAT refund in the UAE, follow these steps:
1. Registration: Register for UAE PASS if you haven’t already, as it is required to log into the ‘Maskan’ app.
2. Application Process:
- Log In: Access the ‘Maskan’ app using your UAE PASS credentials.
- File Creation: Set up a new file in the app and enter details about your construction project.
- Invoice Entry: Use the barcode scanner to input tax invoices or manually enter the details.
- Document Upload: Upload all necessary supporting documents and photos.
- Submission: Once all information is entered and reviewed, submit your application.
3. Follow-Up: Use the app to monitor the progress of your application. The system provides real-time updates and notifications.
4. Receive Refund: Upon approval, the VAT amount will be refunded as per the FTA’s processing guidelines.
Benefits of Using ‘Maskan’
- Efficiency: The digital process is significantly faster than traditional methods, reducing the average application time from days to just minutes.
- Accuracy: Barcode scanning minimizes errors associated with manual data entry.
- Transparency: Applicants can track their application status and receive timely updates, ensuring a transparent process.
- Convenience: The ability to submit and manage applications from anywhere provides unparalleled convenience to users.
The ‘Maskan’ application is a transformative tool that aligns with the UAE’s vision of a smart government. It aims to enhance citizen satisfaction and streamline government services. By utilizing this app, UAE citizens building new homes can reclaim their VAT registration Abu Dhabi efficiently and securely, enjoying the benefits of a fully digitalized process.
Further the usual method to claim a new residence VAT Refund Request is also available by submitting a request to the FTA on its e-Services portal along with the requested supporting documentation, including the details of the applicant and property.
For more detailed information and to register for VAT UAE laws, visit the Auditac International website. Start your journey toward an easier VAT refund process with Auditac today.
