UAE FTA Approves AED 3.2 Billion in VAT Refunds and Connects 18,000+ Retailers to the Digital Tax Refund System

The Federal Tax Authority (FTA) has announced that UAE nationals building new residences have already received AED 3.2 billion in VAT refunds, with payouts expected to continue through June 2025. The milestone highlights the FTA’s success in maintaining accuracy and operational efficiency within its digital VAT refund platforms.

At the same time, more than 18,000 retailers are now integrated with the Digital Tax Refund System for Tourists, giving visitors a seamless, paper-free way to reclaim VAT on eligible purchases. The digital system strengthens transparency and boosts the UAE’s reputation as a global shopping destination while supporting compliance with VAT regulations.

These achievements demonstrate the FTA’s ongoing commitment to digital transformation and service excellence—ensuring faster refunds, fewer errors, and an easier experience for residents and tourists alike.

Over 33.9 Thousand Beneficiaries Gain from the Corporate Tax Late Registration Penalty Waiver Initiative

In a separate update, the FTA confirmed that more than 33.9 thousand corporate taxpayers have benefited from its Penalty Waiver Initiative for Late Corporate Tax Registration.

The Authority is urging remaining businesses to register promptly via the EmaraTax digital platform to avoid penalties and ensure full compliance. Eligible companies that complete registration and file their first corporate tax return can still take advantage of the waiver. The initiative applies to both taxable entities and certain exempt persons required to register under the UAE Corporate Tax Law.

By encouraging timely registration and easing initial compliance burdens, the FTA is helping businesses integrate smoothly into the UAE’s evolving corporate tax framework while promoting a culture of transparency and accountability.

What These Measures Mean for Businesses and the Economy

• Simplified Compliance: Digital systems reduce manual processes and errors, helping taxpayers meet FTA requirements efficiently.
• Financial Relief: Refunds and penalty waivers free up capital for reinvestment and business growth.
• Tourism and Retail Growth: A faster tourist VAT refund process enhances visitor experience and supports the retail sector.
• Business Confidence: Transparent systems strengthen investor trust and align with the UAE’s vision for sustainable economic development.