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

Loading...

Share This Page