How do residential properties differ from commercial properties under VAT law?

Residential leases are VAT-exempt, and the first supply of newly built residential property within 3 years of completion is zero-rated (0%), meaning no 5% VAT is levied on the residential homebuyer.

How does the UAE Citizen Home Construction VAT Refund Scheme work?

Emirati nationals constructing their own primary residence can claim back 100% of the 5% VAT paid on contractor fees, engineering consulting, and approved building materials within 12 months of building completion.

United Arab EmiratesUpdated for 2026Taxes

UAE Commercial Property VAT & Citizen Housing Refund Calculator 2026

Calculate statutory 5% Value Added Tax (VAT) on commercial real estate sales, retail leases, and warehouses, or calculate FTA VAT refunds on newly constructed primary residences for UAE Citizens.

Value Added Tax (VAT)Real Estate & Property Property Taxes & Fees Government & Business Fees

Calculated Result

Payable Value Added Tax (5%)

37,500

Calculator Inputs

Contract Price / Construction Outlay (AED)

AED

Quick select:

Real Estate VAT Category

Calculated Result

Payable Value Added Tax (5%)

37,500

Eligible Citizen FTA Refund Amount

Total Deal Value (Incl. 5% VAT)

787,500

Calculation Methodology

Commercial VAT = Contract / Transaction Price × 5%. Citizen Housing Refund = Approved Construction Costs × 5% / 1.05.

Financial & Statutory Disclaimer

Commercial property sales and leases are standard rated at 5% VAT. Residential rents are exempt, while first residential supplies within 3 years of completion are zero-rated.

This calculator is designed for educational and informational purposes based on publicly declared statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimates. Always verify with the relevant official authorities or a certified professional advisor.

Frequently Asked Questions

Commercial properties (retail shops, corporate offices, warehouses, and hospitality buildings) are subject to standard 5% VAT on sales prices and lease rentals, recoverable as input tax by VAT-registered businesses.

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United Arab Emirates

UAE Commercial Property VAT & Citizen Housing Refund Calculator 2026

Calculator Inputs

Calculation Methodology

Financial & Statutory Disclaimer

Frequently Asked Questions

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