[Opinion] UAE VAT Refunds Surge in 2025 for Housing and Tourist Purchases

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  • Last Updated on 13 August, 2025

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UAE VAT refund FTA update Maskan app tourist e-commerce VAT refund housing VAT refund UAE

[2025] 177 taxmann.com 322 (Article)

U.S. Customs Imposes Additional Duty on Certain Imports from India

The U.S. government has announced an additional 25% ad valorem duty on select imports from India that are identified as being linked to the indirect importation of oil originating from the Russian Federation. This measure aims to tighten trade controls in line with international sanctions and to curb indirect sourcing of restricted commodities.

Effective Date and Exemptions for Ongoing Shipments

The supplementary tariff will take effect 21 days after the issuance of the official order. It will apply to all goods entered for consumption or withdrawn from warehouses on or after that date. However, shipments loaded and already en route before 12:01 a.m. (EDT) on 17 September 2025 will be exempt, provided they are entered before the specified cutoff date.

Tariff Implementation and Compliance Procedures

This new 25% duty will be levied in addition to any existing tariffs, with applicable exclusions determined by established tariff schedules and prior classifications. U.S. Customs and Border Protection (CBP) will oversee the collection of duties at the point of entry. For goods entering foreign trade zones after the effective date, they will be admitted under “privileged foreign status” unless they meet eligibility for “domestic status” under regulatory provisions.

UAE FTA Reports Growth in VAT Refund Schemes

In a separate development, the UAE Federal Tax Authority (FTA) has issued its June 2025 update on VAT refund schemes for residential construction and tourist purchases. The residential construction VAT refund scheme for UAE nationals recorded 38,000 approved applications, amounting to AED 3.2 billion in refunds—a year-on-year increase of 22.74% in applications and 25.72% in refund value. Between June 2024 and June 2025, over 7,000 new applications were approved, totalling AED 653.1 million, with 3,097 processed in the first half of 2025 alone. The update also highlighted the ‘Maskan’ smart application for fully digital, paperless processing, and the VAT refund system for tourist e-commerce purchases launched in December 2024, offering automated passport scanning, digital invoicing, and a portal for refund status tracking.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied