VAT on Real Estate in UAE | Shuraa Tax, Accounting and Auditing

The implementation of VAT on Real Estate in UAE plays a crucial role in regulating the taxation framework of the country’s property sector. The UAE introduced VAT at a standard rate of 5% in 2018, which applies to various real estate transactions, including residential and commercial properties. However, the VAT treatment varies based on the type of property, whether it is a residential or commercial property in UAE, and other related services. Understanding the VAT on Real Estate in Dubai is essential for property owners, buyers, investors, and developers to ensure compliance with the UAE’s tax regulations. The UAE’s VAT law impacts various real estate-related services, including brokerage, property management, leasing, and construction. The VAT treatment depends on the service’s nature and the property type. Services related to commercial property in UAE are generally subject to VAT, while those related to residential property in UAE may be exempt or zero-rated in some cases. Businesses dealing in real estate must be aware of VAT implications when offering these services to avoid penalties from the Federal Tax Authority (FTA).