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UAE started implementing a value-added tax (VAT) of five per cent from January 1, 2018 and businesses in the first phase started registering on the website of the Federal Tax Authority (FTA).
In response to whether VAT applies to renting office space for commercial purposes, the Federal Tax Authority confirmed that commercial leasing does fall under the category of taxable revenue, irrespective of the type of commercial activity.
The VAT will be applied on the property leased for commercial or residential purposes.
Still got queries on how VAT affects real estate in UAE? Read our detailed story.
VAT in UAE: Key facts on real estate
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