Dubai VAT on Purchase of A Property



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?