Is VAT charged on commercial property in the UAE?

Yes. In the UAE, the supply of commercial property — whether sold or leased — is generally subject to VAT at the standard rate of 5%, administered by the Federal Tax Authority (FTA). Commercial property covers offices, retail units, warehouses, hotels and similar non-residential real estate. This is different from residential property, which is treated separately under the VAT framework. The VAT-registered seller or landlord normally charges 5% on the price or rent and accounts for it to the FTA, while a VAT-registered buyer using the property for taxable business activity may be able to recover that VAT as input tax. To handle a commercial property transaction correctly, confirm the parties' VAT registration status, ensure tax invoices are issued, and check whether any special treatment (such as a transfer of a going concern or a designated-zone location) applies. Because each deal turns on facts, register or confirm details with the FTA and, if the contract is significant, you can compare verified UAE legal and tax professionals on LEXAI to review the structure before signing.