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

For a taxable commercial property bought off-plan, VAT at the standard rate of 5% is generally accounted for by reference to the VAT "date of supply" rules rather than only on final handover. Under the UAE framework administered by the Federal Tax Authority (FTA), the time of supply can be triggered by events such as the issue of a tax invoice or the receipt of a payment, which matters where the price is paid in staged or instalment payments. In practice this often means VAT can become due progressively as instalments are paid or invoices are issued, rather than as a single charge at completion, so each qualifying payment may carry its own 5% VAT and tax invoice. A VAT-registered buyer using the unit for taxable business may recover that input VAT on the corresponding return. Because the precise timing depends on the contract's payment schedule and how invoices are issued, review your sale-and-purchase agreement and confirm the date-of-supply treatment with the FTA. For an off-plan commercial purchase, you can compare verified UAE legal and tax professionals on LEXAI to map when VAT falls due.