Answer:
Yes. If the landlord is registered with the Federal Tax Authority (FTA), and the leased property is used for commercial purposes, the landlord is entitled to charge 5% VAT on the rent and collect it from the tenant.
Legal Basis:
- Articles 2, 3, 4, 15, 19, 25 of Federal Decree-Law No. 8 of 2017 on Value Added Tax
- Executive Regulations issued under the VAT Law
Court emphasized that VAT is due from the tenant once the landlord proves FTA registration and that the lease is commercial
Relevant case law:
Case No. 06/01215/2025 of 2025 / RDC / Primary Chamber - First Primary Committee on Orders Performance
Case No. 02/11559/2025 of 2025 / RDC / Primary Court - Eighth Primary Committee
Case No. 02/11203/2025 of 2025 / RDC / Primary Court - Eighth Primary Committee
Case No. 02/11196/2025 of 2025 / RDC / Primary Court - Eighth Primary Committee
Case No. 02/12773/2025 of 2025 / RDC / Primary Court - Second Primary Committee