Is VAT charged when selling a business as a going concern in the UAE?

It may not be. Under UAE VAT, the transfer of a business (or an independent part of it) as a going concern can, when the legal conditions are met, be treated as outside the scope of VAT — meaning no VAT is charged on that transfer, including property that forms part of the business being sold. The Federal Tax Authority (FTA) sets conditions for this treatment: broadly, the assets transferred must constitute a business capable of being operated on its own, the buyer must be (or become) VAT-registered, and the buyer must intend to continue the same kind of business. If those conditions are not met, the supply — including any commercial property — may instead be a normal taxable supply at the standard rate of 5%. Getting this right matters, because mistreating a transfer can lead to under- or over-charging VAT and later FTA assessments. Document the transaction carefully and confirm whether the going-concern conditions are satisfied with the FTA. For a business or asset sale involving real estate, you can compare verified UAE legal and tax professionals on LEXAI to structure the transfer correctly.