Is VAT charged on commercial property rent in the UAE?

Yes — leasing commercial property in the UAE is normally a taxable supply at the standard 5% VAT rate, so a VAT-registered landlord adds 5% to the rent, issues a tax invoice and accounts to the Federal Tax Authority (FTA). This covers offices, shops, warehouses and similar non-residential premises. A VAT-registered tenant using the premises for taxable business can usually recover the VAT as input tax, subject to FTA conditions. Leasing existing residential property is generally exempt, and service charges billed alongside commercial rent may also carry VAT. Check whether quoted rent is VAT-inclusive, keep tax invoices, and confirm the landlord is genuinely VAT-registered. Full guide: UAE commercial property VAT. You can compare verified UAE legal and tax professionals on LEXAI.