UAE Federal Tax Authority expands AI services to automate refunds, simplify compliance

The UAE Federal Tax Authority is using artificial intelligence and advanced technologies to simplify tax procedures, reduce administrative requirements and accelerate transaction processing, the state-run WAM news agency reported.

The authority's AI strategy aligns with the UAE Artificial Intelligence Strategy 2031 and the government's broader digital transformation agenda.

What is the UAE Federal Tax Authority's AI strategy?

The Federal Tax Authority uses AI across data analysis, risk assessment, request processing and process automation. Its approach begins with identifying opportunities based on international practices and consultations with business units, then moves through data readiness assessments and phased implementation, from proof of concept to full operation.

The goal is to improve efficiency and the overall customer experience.

How is AI used to automate UAE VAT refunds for homebuilders?

One of the authority's main AI applications covers VAT refunds for UAE nationals building new homes. Through the Maskan smart application, refund requests are automatically generated when a municipality issues a building completion certificate or permit. Citizens are then notified by text message and email to complete procedures electronically.

AI technologies verify refund amounts and suppliers' tax registration numbers, while automating parts of request processing to improve accuracy and speed up payments. Invoice details are automatically added to users' accounts and consolidated into a single file. Integration with the Central Bank of the UAE has also reduced the banking information required from applicants.

VAT refunds issued under the new home construction scheme reached about AED 3.72 billion from the service's launch through the end of March 2026. The number of beneficiaries has increased due to continuous service improvements and awareness programs, the authority said.

How does the UAE's tourist VAT refund system work?

The authority's digital transformation has extended to tourism through a dedicated VAT refund system for visitors. The system includes digital invoices and self-service kiosks at departure points, hotels and shopping centers. System readiness reached 100% in the first quarter of 2026, compared with 99.99% in 2025.

Average processing time for refund requests reached one minute and 10 seconds in the first quarter of 2026, the authority said.

What role does EmaraTax play in UAE tax compliance?

The EmaraTax platform has become the central hub for electronic tax services in the UAE, allowing users to register, file returns and pay taxes online. The authority continues to support compliance through guidance materials, tax clarifications and educational programs delivered in person and online.

AI-powered product registration through EmaraTax has also helped facilitate sweetened beverage registration under the updated excise tax mechanism.

What is the UAE's tiered excise tax model for sweetened beverages?

The authority applies a tiered volumetric model for excise taxes on sweetened beverages, basing tax rates on sugar and sweetener content to encourage lower-sugar alternatives.

Abdulaziz Mohammed Al Mulla, director-general of the Federal Tax Authority, said the UAE was among the first countries in the region to introduce the model. He added that the system could prompt manufacturers to reduce sugar levels, improve product formulations and increase the availability of healthier options.