By Staff Reporter
The United Arab Emirates’ Federal Tax Authority (FTA) is leveraging artificial intelligence (AI) to modernize tax administration, improve service delivery, and speed up refund processing as part of the country’s wider digital transformation efforts.
The initiative is driven by the FTA’s AI Strategy, which aligns with the UAE Artificial Intelligence Strategy 2031 and aims to create a smarter, more efficient tax ecosystem.
FTA Director-General Abdulaziz Mohammed Al Mulla said AI technologies are being integrated into key functions, including data analysis, risk assessment, request processing, and workflow automation. The Authority is implementing the technology through a phased approach, progressing from pilot projects to full-scale deployment.
A major success story has been the enhancement of the VAT refund service for UAE nationals constructing new homes. Through the Maskan smart application, refund requests are now generated automatically once a building completion certificate or permit is issued. Applicants receive notifications via SMS and email, allowing them to complete the process electronically. By the end of March 2026, VAT refunds under the new home construction scheme had reached approximately AED 3.72 billion.
The tourist VAT refund programme has also undergone significant upgrades. Self-service kiosks have been introduced at airports, hotels, and shopping centres, helping to streamline the process. During the first quarter of 2026, the system achieved a 100 percent readiness rate, while the average refund processing time was reduced to just one minute and ten seconds.
Meanwhile, the EmaraTax platform continues to serve as the UAE’s central tax management portal for registration, filing returns, and payments. The platform now supports the registration of sweetened beverages under the country’s newly introduced tiered volumetric excise tax system, which calculates tax based on sugar content.
According to Al Mulla, the UAE is among the first countries in the region to implement this innovative taxation model. The measure is expected to encourage beverage manufacturers to reduce sugar levels in their products and expand healthier, lower-sugar alternatives for consumers.
Source: Emirates News Agency (WAM)
