VAT on property services is the value-added tax applied to certain real estate transactions and services in the UAE. The treatment differs by property type: residential and commercial property, and the services around them, are not all taxed the same way. This page is general information, not tax advice.
Where you’ll see it
You’ll see VAT most clearly on services such as agency commission, property management and maintenance, which generally attract VAT. Commercial property transactions are typically taxable, while residential property is treated differently — the first supply of new residential property and the sale or lease of residential property follow specific rules. Confirm the current treatment for your transaction.
Why it matters
VAT adds to the real cost of services and some transactions. Knowing which costs carry VAT — and budgeting for it on commissions and management fees — avoids underestimating the total outlay on a deal.
What it is not
VAT is not the DLD transfer fee or other government registration charges — it is a separate tax. The treatment of residential property is also not the same as commercial; they follow different rules.
Example
A buyer paying agency commission and engaging a property manager finds VAT added to those service fees, while the residential purchase itself follows its own VAT treatment.
Connected documents and parties
Tax invoices, service agreements; buyer/owner, service providers, Federal Tax Authority.
Going deeper: related reading: agent commission; take professional tax advice for your situation.
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