The UAE Federal Tax Authority (FTA) has issued updated VAT guidance for supplies of real estate. The guidance covers the VAT treatment of supplies of real estate and various common transactions that occur within the real estate sector. With respect to different supplies, the guidance includes the following VAT treatment:
In general, where a supply is subject to the standard 5% rate or zero-rated, input VAT is recoverable in full, and where a supply is exempt, input VAT is not recoverable.
In addition to the above supply types, the guidance also covers VAT matters in relation to mixed-use developments, owners associations, development infrastructure, supplies between landlords and tenants, and others.