Is there VAT on the sale of bare land in the UAE?

Generally no. The supply of bare land in the UAE is treated as exempt from VAT, so a sale of genuinely undeveloped land does not carry the standard 5% VAT. "Bare land" means land that has no completed or partially completed buildings or civil engineering works on it. The position changes once the land is covered, in whole or in part, by buildings or infrastructure: such land can fall outside the bare-land exemption and may instead be a taxable supply at 5%, depending on the facts. Because the exemption hinges on the precise physical state of the land at the time of supply, the classification can be finely balanced — a plot with foundations or services already installed may not qualify as bare. The treatment also affects whether the seller can recover input VAT on related costs, since exempt supplies generally carry no recovery right. Confirm the status of your specific plot with the Federal Tax Authority (FTA) before completing, and for a land transaction of any size you can compare verified UAE legal and tax professionals on LEXAI to confirm the VAT treatment.