The FTA states that the term ‘construction of mosque’ include the following that is incurred before the Mosque became operational:
• The actual construction process of the mosque
• Furnishing and equipping process of the mosque
• Supply of the necessary equipment, devices and maintenance
• Any requirement necessary to carry out authorised activities of the mosque before it becomes operational
• All that is required to carry out all the authorized activities of the Mosque before the Mosque becomes operational
Who is eligible for a VAT Refund on the Construction & Operation of Mosques in the UAE?
The FTA states that a donor is eligible for the refund of VAT incurred on the construction of a Mosque. The donor needs to incur VAT in the UAE
• The goods and services must have been purchased particularly for building the mosque
• The donor needs to obtain and keep a Mosque Operation Commencement Certificate
• The Mosque has been handed over or is intended to be handed over by the Donor to any other person for whom the General Authority of Islamic Affairs and Endowments or the local authority concerned with Mosques’ affairs approved the handover of the Mosque, unless the handover constitutes a taxable supply, or
• The Donor operates the Mosque in accordance with the approval obtained from the Competent Authority
