GTL Summary:

This Decision provides the implementing regulations for the UAE VAT law. Specifically, Article 66 establishes the conditions under which a natural person who is a UAE national can claim a refund for VAT incurred on the construction of a new residence. The provision stipulates that the claim must relate to a newly built property used exclusively as the person's or their family's residence. The refund claim must be submitted within six months of the building's completion. Eligible expenses include contractor services and building materials, but exclude furniture and electrical appliances, ensuring clarity for taxpayers.

Document Type: ERS - Executive Regulations
Law: VAT (FDL No 8 of 2017, as amended)
Decision Number: 52-article-66
Year: 2017
Country: 🇦🇪 UAE
Official Name: Article 66 - New Residence
Last updated at: 2025-12-26 14:13:51 UTC

Part 16 - Other Provisions Relating to Refund

Article 66 - New Residence

  1. If a person owns or acquires land in the State on which he builds, or authorizes the construction of, his own residence, he shall be entitled to make a claim to the Authority to refund the tax on the expenses of constructing the residence.

  2. For the purposes of Clause (1) of this Article:

    1. The claim may only be made by a natural person who is a national of the State.

    2. The claim shall relate to a newly constructed building to be used exclusively as residence of the person or his family.

    3. The claim may not be made in connection with a building which will not be used exclusively as a residence by the person or his family, for example if it is to be used as a hotel, guest hostel, hospital or for any other purpose not consistent with being used as a residence.

  3. The refund claim in accordance with this Article shall be filed within [12 months] [G88] from the date of completion of the newly built residence. For the purposes of this Clause, any newly built residence shall be considered completed at the earlier of the date the residence becomes occupied, or the date when it is certified as completed by a competent authority in the State, or as may otherwise be stipulated by the Authority. [38]

  4. The refund claim shall be submitted to the Authority in such manner and contain details as determined by the Authority.

  5. If the Authority refunds the tax in accordance with this Article, and following the receipt of such refund the person breaches any condition stipulated in Paragraph (c) of Clause (2) of this Article, the Authority may require the person to repay the amount of refunded tax.

  6. The categories of expenses on which the person may claim a refund of tax under this Article are:

    1. Services provided by contractors, including services of builders, architects, engineers, and other similar services necessary for the successful construction of the building.

    2. Building materials, being goods of a type normally incorporated by builders in a residential building or its site, but not including furniture or electrical appliances.

Footnotes

[38]Clause 3 amended as per Cabinet Decision No. 24 of 2021.

GTL Notes

[G88] Amended by Federal Decree-Law No. 24 of 2021 effective from 1 January 2018. Please note that while the word 'six (6) months' appears in the text of the English version available on the UAE legislation website, the word '12 months' appears in the Arabic text and hence we have corrected the same.

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