April, 2021

Real Estate – VAT

The UAE real estate sector operates within a unique VAT environment—requiring deep expertise to navigate the differences between residential, commercial, and mixed-use developments. At V-Tax, we provide precise, regulation-aligned tax consulting to ensure your real estate transactions are both compliant and financially optimized.

✅ Why Real Estate Tax Consultation Matters

• Avoiding Penalties and Ensuring Compliance: Under Federal Decree-Law No. 8 of 2017 and Cabinet Decision No. 52 of 2017, VAT implications vary across first supplies, leases, and transactions involving bare land, designated zones, and charitable or mixed-use buildings. Our advisors ensure you remain compliant, avoiding unexpected penalties due to misclassification.
• Maximizing VAT Recovery: We help you differentiate between zero-rated, exempt, and standard-rated supplies (e.g., 0% for first supply of residential buildings, 5% for commercial real estate). From development costs to repair and maintenance expenses, we optimize your VAT recovery strategy.
• Tailored Structuring for Real Estate Ventures: Our tax consultants guide you in structuring lease agreements, development contracts, and mixed-use projects. Whether you’re managing residential communities, labor accommodations, or commercial properties, we align your activities with FTA guidance to ensure accurate input-output VAT accounting.

🧩 Our Specialized Advisory for the Real Estate Sector

We advise on a broad scope of VAT-related real estate scenarios, including:

• Commercial property transactions and the special payment process
• First vs. subsequent supply treatment (residential & charitable)
• VAT implications on mixed-use developments
• Bare land vs. developed land classification
• VAT treatment of management entities and Owners’ Associations
• Refund mechanisms for UAE Nationals building new residences

📩 Partner With Experts Who Understand the Landscape

Whether you’re a property developer, investor, or managing authority, V-Tax provides you with strategic insights and compliance assurance. Contact us at info@v-tax.com and ensure your real estate portfolio is tax-smart and regulation-ready.