Dubai VAT on Purchase of A Property

Discussion in 'Dubai property' started by rsuleman, Jan 15, 2018.

  1. rsuleman

    rsuleman New Member

    UAE has effected 5% VAT from Jan. 01, 2018.
    I understand that VAT will be applied henceforth to price of properties bought.
    However, I am confused now due to a specific circumstance as follows:
    The property was booked with a developer and the total payments were made as per the plan. However, SPA was not signed and pre-registration of Oqood was not done, earlier.
    The developer started the processing of SPA and pre-registration of Oqood after January 01, 2018. While I am not sure whether the VAT is applicable in this case, the developer is demanding an amount equal to 5% of the price as VAT payable.
    Can anybody can guide me what should be my response to the developer in response to its demand of VAT?
  2. realdeals

    realdeals Active Member


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