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When is VAT due on an off-plan commercial property purchase in the UAE?

Asked by Anonymous·Jun 26, 2026·1 answers
A buyer paying in instalments for an off-plan office or retail unit wants to know at what point VAT becomes payable.

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
For a taxable commercial property bought off-plan, 5% VAT generally follows the "date of supply" rules rather than only final handover. Under the framework administered by the Federal Tax Authority (FTA), the time of supply can be triggered by issuing a tax invoice or receiving a payment, so with staged instalments VAT often becomes due progressively — each qualifying payment may carry its own 5% VAT and tax invoice. A VAT-registered buyer using the unit for taxable business may recover input VAT on the corresponding return. Review your sale-and-purchase agreement and confirm the date-of-supply treatment with the FTA. Full guide: VAT on commercial property in the UAE.
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