Dubai Commercial Real Estate VAT Calculator

Navigating the tax landscape for business properties in Dubai is critical for investors and companies alike. While residential property is mostly exempt or zero-rated, Commercial Real Estate in Dubai is subject to a 5% VAT (Value Added Tax). Our advanced calculator helps you estimate the VAT payable and recoverable on offices, retail shops, and warehouses.

VAT Rules for Commercial Property in Dubai

According to the Federal Tax Authority (FTA) guidelines, commercial real estate transactions follow specific tax treatments:

1. Sales and Leases

Unlike residential units, the sale or lease of any commercial building or land is considered a taxable supply. This means a 5% VAT must be added to the transaction value (sales price or annual rent).

2. Recoverable VAT (Input Tax)

One of the main advantages for VAT-registered businesses is the ability to recover "Input VAT." If your company uses the commercial space to make taxable supplies, you can generally claim back the VAT paid on the purchase, rent, and related services.

• Fully Recoverable: For businesses making 100% taxable supplies.
• Partially Recoverable: For businesses making both taxable and exempt supplies.

3. VAT on Agency Fees

Professional services provided by real estate brokers are also subject to 5% VAT. Our tool allows you to calculate the tax on these commissions to give you a complete picture of your transaction costs.

Key Features of our Tool

• Real-time Tax Calculation: Instantly see the VAT impact on your commercial deal.
• Recoverability Simulation: Estimate how much of the tax you might be able to claim back.
• Fee Integration: Includes VAT on broker commissions for a total cost overview.
• 100% Serverless: Your financial data remains private in your browser.

Simplify your commercial property tax planning with the most precise VAT calculator for the Dubai market.