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UAE: FTA set to roll out phase II of smart app for VAT reclaim on home construction

The platform offers citizens a digitalised, faster, and more seamless procedure to recover the VAT they incurred on the construction of their new homes

The Federal Tax Authority said the full features of the ‘Maskan’ application that has been designed to ensure performance efficiency and speed, offering citizens simple and clear procedures for VAT recovery process, will be rolled out in the upcoming second stage following the first phase introduced two days ago.

The first stage of the Maskan allows UAE citizens to recover the Value Added Tax they incurred on the construction of their new homes using 100 per cent paperless, digital procedures. Applicants can create their own file and enter tax invoices related to the purchase of supplies for the construction of their home by simply uploading the files or attaching photos and submitting the refund request.

The second phase will be initiated before the end of July 2024, the FTA said. It will introduce all characteristics and features of Maskan, “allowing citizens to scan a barcode from the app. The barcode will help upload tax invoices from outlets registered with the authority to each applicant’s account, instead of submitting conventional paper invoices, as was the process in the previous system, which are susceptible to loss or damage, and risk disqualifying UAE citizens from reclaiming tax on their eligible purchases,” the FTA said in a statement.

The digital platform, in line with a series of transformational projects, was designed in accordance with the latest standards to ensure performance efficiency and speed, and offer simple and clear procedures. This offers UAE citizens a digitalised, faster, and more seamless procedure to recover the VAT they incurred on the construction of their new homes.

Khalid Ali Al Bustani, director General of the FTA, said the launch of the ‘Maskan’ digital platform forms part of our efforts to implement the wise leadership’s vision to establish a modern housing system that ensures UAE citizens’ happiness and provides them with stability and a high quality of life. “The platform offers transparent and streamlined procedures to expedite the process for refunding taxes that Emirati citizens incurred on the construction of their new homes.”

Al Bustani said the app launch falls under the FTA’s continuous development plans, designed to keep pace with the government’s digital strategy to drive smart transformation. “The objective is to provide sustainable, proactive, and innovative services that reflect the leadership and excellence of the government system, meet users’ expectations, and fulfil the needs and requirements of the government of the future, which, in turn, align with the aspirations of smart city residents, and provide them with renewed opportunities for sustainable development and wellbeing.”

Abdullah Al Bastaki, executive director of the Information Technology Sector at the FTA, said the Maskan would streamline and expedite the process for citizens’ reclaim of the value-added tax paid for the construction of their new homes. “It came within the framework of the Authority’s commitment to the Zero-Government Bureaucracy (ZGB) programme, which was launched by the UAE government to enhance efficiency in public services.”

The programme initiated during this year’s government sessions seeks to accelerate the implementation of Zero Bureaucracy by fostering strong partnerships with the private sector. He said the FTA will continue to provide facilities in all its services by abolishing more procedures and reducing the service duration in line with “Zero Government Bureaucracy.”

The FTA expects the new app to significantly enhance citizen satisfaction with the VAT refund service on the construction of their new homes, highlighting some of the most notable features it provides, namely the ability to create an account using the unified login feature allowing customers to access the Authority’s digital platforms with the UAE PASS digital identity solution, generate a personal QR code for each applicant, and with a single click, have the application extract all details from the tax invoice and automatically calculate the VAT amount eligible for a refund.

The application is among the transformative projects within the federal government performance agreements for 2023-2024. “These quality projects propel the UAE towards the future and enhance its competitiveness by achieving significant impacts across all sectors in a short period. The new initiative promotes the UAE as a global hub for the new economy and contributes to creating a supportive ecosystem for the UAE to be the most pioneering and advanced nation over the next decade, in line with the objectives of the "We the UAE 2031" vision,” the FTA statement said.

The FTA is participating in a government programme that aims to accelerate the implementation of Zero Bureaucracy by fostering strong partnerships with the private sector, targeting the elimination of 2,000 government procedures within a year and reducing the time taken for government services by 50 per cent.