Smart kiosks and digital invoices are reducing processing times across the UAE’s evolving tax ecosystem.
ABU DHABI: The UAE Federal Tax Authority (FTA) is adopting an advanced, proactive model to develop the tax system, legislation, and customer services by leveraging artificial intelligence and advanced technologies to streamline procedures, reduce administrative requirements, and speed up transaction processing.
The Authority’s use of AI in tax administration is guided by its AI Strategy, which aligns with the UAE Artificial Intelligence Strategy 2031 and the national digital transformation agenda, aiming to boost efficiency and enhance the customer experience.
According to Abdulaziz Mohammed Al Mulla, Director-General of the Federal Tax Authority, AI is being deployed across multiple tax functions, including data analysis, risk assessment, request processing, and process automation, to improve operational efficiency.
Al Mulla said the Authority follows an integrated approach to developing and deploying AI use cases, starting with identifying opportunities based on international best practices and workshops with business units, then assessing data readiness and alignment with strategic priorities, before advancing through phased implementation from proof of concept to full deployment, prioritising high-value and feasible applications.
VAT refund milestone
- The VAT refund service for UAE nationals constructing new homes marks a key milestone in the shift from digitalisation to proactive service delivery.
Proactive service
The Authority has introduced a proactive service through the Maskan smart application, where a VAT refund request is automatically generated once a building completion certificate or building permit is issued by the relevant municipality. Citizens are then notified via SMS and email to complete the remaining steps electronically.
In its latest AI-driven enhancements, the Authority uses advanced technologies to verify refund amounts and validate suppliers’ tax registration numbers, while also automating multiple stages of request processing. These measures improve accuracy and speed up the disbursement of tax refunds to eligible citizens.
Invoice details are automatically populated in the citizen’s account once issued by a registered supplier.
In addition, invoices are consolidated into a single file, and banking information fields have been reduced through integration with the Central Bank of the UAE, making the process more seamless, user-friendly, and efficient.
The impact of these enhancements is reflected in the service’s performance outcomes.
Increase in the number of beneficiaries
- The rising number of beneficiaries underscores the success of the Authority’s ongoing development efforts, as well as growing tax awareness driven by continuous outreach programmes.
Expansion into the tourism sector
- The digital transformation journey has also expanded into the tourism sector through a digital VAT refund system for visitors, which has been continuously enhanced with digital invoices and self-service kiosks at airports, hotels, and shopping centres, offering a faster and more seamless experience for eligible tourists.
Self-service kiosks enable fully automated refund processing, with performance continuously monitored through key performance indicators, including a system readiness index that reached 100% in Q1 2026, compared with 99.99% in 2025.
Support for broader public health objectives
In another area of development, the introduction of a tiered volumetric model for excise tax on sweetened beverages highlights how the tax system is being used to advance wider public health objectives.
Under this framework, taxation is based on the sugar and other sweetener content of products, incentivising manufacturers to expand their range of lower-sugar alternatives.
Al Mulla noted that the UAE was among the first countries in the region to adopt a mechanism for calculating excise tax on sweetened beverages using the tiered volumetric model.
He added that the initiative is expected to encourage beverage producers to reduce sugar levels in their products, thereby lowering tax burdens, improving product formulations, and promoting a shift towards healthier alternatives.
He added that the product registration system, powered by advanced artificial intelligence technologies through the EmaraTax platform, has streamlined the registration of sweetened beverages under the new mechanism, combining efficient tax administration with support for the public health objectives linked to this tax category.
