Is commercial property subject to 5% VAT in Dubai?
Yes. Sales and leases of commercial property — offices, shops, warehouses, industrial units — are standard-rated at 5% VAT, as are their service charges, and a purchase over AED 5 million is a 'capital asset' with a 10-year VAT adjustment period. On secondary commercial sales the buyer often pays the VAT directly to the FTA via a special mechanism. Verify treatment before signing.
Rules and eligibility criteria change — confirm the current position with the relevant authority before acting. This is general information, not legal advice.
Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.
