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Do I pay VAT when buying an office in Dubai?

Asked by Anonymous·Jun 26, 2026·1 answers
A company is purchasing an office unit in Dubai and needs to budget for whether VAT will be added on top of the price.

This answer is AI-generated by LEXAI. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

AI-generated answer

Jun 26, 2026
Generally yes. An office is commercial property, so its sale in Dubai is normally subject to UAE VAT at the standard rate of 5% where the seller is VAT-registered. The seller charges 5% on the sale price and must issue a valid tax invoice, then accounts for that VAT to the Federal Tax Authority (FTA). If you are buying the office through a VAT-registered business that will use it to make taxable supplies, you may be entitled to recover that 5% as input tax, subject to the FTA's conditions and proper documentation. Budget for the VAT as part of your cash flow even if you expect to recover it later, because recovery happens through your VAT return rather than at the point of sale. Check the seller's registration status, confirm whether the unit sits in a VAT designated zone, and keep the tax invoice and transfer documents. Rules on timing and recovery are detailed, so verify your position with the FTA, and for a high-value purchase you can compare verified UAE legal and tax professionals on LEXAI before completing.
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