Authorities Confirm VAT Exemption for Residential Real Estate in the UAE

PUBLICATIONS / Articles / 2017 / Authorities Confirm VAT Exemption for Residential Real Estate in the UAE

The United Arab Emirates Authorities have announced that residential property will be exempt from its new value-added tax (VAT) regime but a five percent charge will apply to commercial property. With reference to a briefing for tax professionals, the exemption will cover real property sales and leasing, and the first sale of property will be zero-rated, to allow input tax credits. Gulf Cooperation Council states, including the UAE, are introducing VAT and new excise duties as part of a common framework. It is expected that VAT will be introduced across the GCC from 1st January 2018, although countries are at different stages of preparation.

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