Question 1

Do I pay VAT on residential rent in Dubai?

Accepted Answer

No. Residential property rentals are zero-rated for VAT — first supply is 0%, subsequent supplies are exempt. Tenants pay no VAT and landlords don't register for VAT on residential rent income.

Question 2

Do I pay VAT on commercial rent?

Accepted Answer

Yes — commercial leases are standard 5% VAT. Landlord collects 5% from tenant and remits to the FTA. Mandatory registration required if annual rental income ≥ AED 375,000.

Question 3

When is VAT registration mandatory?

Accepted Answer

When annual taxable supplies (commercial rent + other VAT-applicable income) reach AED 375,000. Below that, voluntary registration is allowed at AED 187,500. Below AED 187,500, no registration possible.

Question 4

How often do I file VAT returns?

Accepted Answer

Quarterly for most landlords. Returns submit via the FTA e-Services portal within 28 days of quarter-end. Late filing = AED 1,000 first offence, AED 2,000 repeat.

Question 5

Can I reclaim input VAT on commercial property?

Accepted Answer

Yes — VAT paid on related expenses (service charges, repairs, agent fees, professional services) is reclaimable as input VAT against your output VAT collected. Net-positive landlords pay the difference; net-negative landlords get refunds.

Question 6

Holiday-home / short-let VAT treatment?

Accepted Answer

Holiday-home rentals are typically classified as commercial — 5% VAT applies. DTCM-licensed short-let operators handle VAT on owner's behalf in many cases. Confirm with your operator and accountant.

Landlord VAT Calculator — UAE

Inputs

VAT computation

Frequently Asked Questions

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