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Finance, tax, residency & ownership structures · Federal Tax Authority

UAE VAT: residential, commercial and bare-land property

VAT treatment can differ for residential property, commercial property, bare land, first supplies, leases and mixed-use transactions. The transaction facts and supplier status matter.

Reviewed by Rapid Deals: 6 Aug 2026Next scheduled review: 6 Oct 2026Level: tax high stakes
What this means in practice

Apply the framework to the real facts.

Confirm the property use, transaction type, date, parties and tax-registration position. Use current FTA guidance and obtain tax advice before pricing or invoicing a material deal.

What to check

  • Residential, commercial, bare land or mixed use
  • Sale or lease
  • First or later supply
  • Supplier tax-registration status
  • Price inclusive or exclusive of VAT

Common mistakes

  • Adding 5% to every property transaction
  • Treating mixed-use as entirely residential
  • Ignoring VAT on brokerage or commercial rent
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