VAT Guide: Real Estate VAT Guide

VAT Guide | VATGRE1 | April 2021

1. Real Estate Guidance

1.1. Overview

1.1.1. Short brief

VAT was introduced on 1 January 2018 in the UAE. As a general consumption tax on the supply of goods and services, its effects are applicable to supplies of real estate made in the UAE.

1.1.2. Purpose of this document

This document contains guidance about the VAT treatment of supplies of real estate, as well as various common transactions which occur within the real estate sector.

The purpose of this document is to provide guidance on how VAT affects businesses which operate within the real estate sector, as well as for owners or landlords of real estate.

1.1.3. Who should read this document?

This document should be read by owners of commercial and residential real estate, landlords making supplies of commercial or residential real estate, and businesses operating within the construction industry, or making supplies which relate to real estate. Property managers and owners’ associations may also find this guide useful.

It is intended to be read in conjunction with other relevant guidance published by the Federal Tax Authority (“FTA”).

1.1.4. Status of the document

This ...