Tax and accounting for UAE property businesses.

Common tax challenges

Property is the sector where VAT classification does the most damage when it is wrong, because the categories look similar and behave completely differently.

• Residential versus commercial. Commercial property is generally standard-rated. Residential is not. Getting this wrong affects both what you charge and what you can recover.
• First supply of residential property. The first supply of newly constructed residential property within the prescribed period is generally zero-rated, meaning input VAT is recoverable. Subsequent supplies are generally exempt, meaning it is not. Same building, different treatment, entirely different recovery position.
• Bare land. Generally exempt, which blocks recovery on associated costs.
• Input VAT apportionment. A business making both taxable and exempt supplies cannot recover everything. Overheads have to be apportioned on a reasonable basis applied consistently, and an incorrect method is expensive to unwind years later.
• Record retention. Retention requirements for real estate records run longer than the general rule. Records disposed of early cannot be reconstructed.

What we provide

• Supply classification reviewed property by property
• Input VAT apportionment method designed and applied consistently
• Rental income and service charge accounting
• Development cost tracking and capitalisation
• Owners association and service charge reporting where relevant
• VAT returns and Corporate Tax filing

Typical documents

• Title deeds and property schedules
• Tenancy contracts and rent rolls
• Sale and purchase agreements
• Construction and development cost invoices
• Service charge budgets and statements
• Bank statements and loan agreements

Our process

We classify every revenue stream before touching the ledgers, because the apportionment method depends on it. Then we set the method, document why it is reasonable, and apply it consistently, which is what makes it defensible later. See VAT return filing.

Getting started

Tell us your licence type and what is outstanding, and we will confirm which returns apply and what the deadlines are before any work begins. Send us your details, or check your position with the tax status tool.