The Dubai Land Department has clarified that the sale of off-plan commercial properties is subject to “value-added tax” (VAT), and that input tax is refundable in such cases.
The department noted that completed properties are exempt if they are partially or fully leased, specifying that output tax equals 5% of the value of taxable output (excluding zero-rated transactions).
It added that the tax is due for any tax period in an amount equal to the total output tax payable, less the total recoverable input tax for the same period.
