{"id":49943,"date":"2017-03-28T22:59:06","date_gmt":"2017-03-28T15:59:06","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=49943"},"modified":"2017-03-28T21:12:46","modified_gmt":"2017-03-28T14:12:46","slug":"commercial-property-sales-subject-to-vat-from-next-year-but-residential-is-exempt","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/commercial-property-sales-subject-to-vat-from-next-year-but-residential-is-exempt\/","title":{"rendered":"Commercial property sales subject to VAT from next year – but residential is exempt"},"content":{"rendered":"


\nProperty experts have welcomed news from the Ministry of Finance that sales and leases of commercial property will be subject to VAT from January, but residential property will not.In a briefing session for advisers last week at Festival City, civil servants said that offices, shops and other commercial property will be subject to the new 5 per cent VAT levy.However, sales and leases of residential property will be exempt from the tax, along with undeveloped land.Property development and the first sale of new homes will be subject to a zero rate of VAT.This means that property developers will be able to claim back any VAT they have to pay from the Government.”These charges are broadly in line with what we expected and in line with the way in which VAT operates elsewhere in the world,” said Alan Robertson, chief executive for JLL’s Middle East operation.”Obviously no new tax is going to be exactly welcomed, but from what we can see the tax is designed to be cost-neutral to registered businesses, so we do not expect it to have too much impact on commercial organisations.”Last week the Ministry of Finance announced that businesses which provide taxable goods or services with annual revenue of more than Dh375,000 will be required to register. Businesses with tax\u00adable supplies below Dh375,000 but over Dh187,500 will also have the option to register.”I think with all these things dealing with the unknown is far worse than dealing with the known and now that the details of the new tax are coming out, occupiers will able to put the right systems in place in preparation to deal with it,” said Matthew Dadd, a real estate partner at Knight Frank in Abu Dhabi.”I’m not sure that many of the occupiers we deal with have yet come to grips with the fact that we are less than a year away from implementation,” he added.The Ministry of Finance will start registering companies that are above the yearly threshold for value added tax in the second half of this year as the country gears up for implementing the levy from January 1, 2018.lbarnard@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Commercial property sales subject to VAT from next year – but residential is exempt<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Property experts have welcomed news from the Ministry of Finance that sales and leases of...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-49943","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-cZx","jetpack-related-posts":[{"id":74796,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/vat-to-have-minimal-impact-on-rents-says-propertyfinder\/","url_meta":{"origin":49943,"position":0},"title":"VAT to have minimal impact on rents, says Propertyfinder","date":"December 17, 2017","format":false,"excerpt":"\r Propertyfinder Group says there is still confusion about residential and commercial building VAT exemptions\r \r Source : arabianbusiness.com\r Read more...VAT to have minimal impact on rents, says Propertyfinder","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":51636,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/vat-to-hit-off-plan-property-sales-in-uae\/","url_meta":{"origin":49943,"position":1},"title":"VAT to hit off-plan property sales in UAE","date":"April 11, 2017","format":false,"excerpt":"\r 5% VAT on first sale of new residential property will not stop flipping, says experts\r \r Source : arabianbusiness.com\r Read more...VAT to hit off-plan property sales in UAE","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":76596,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-designates-20-free-zones-exempt-from-vat\/","url_meta":{"origin":49943,"position":2},"title":"UAE designates 20 free zones exempt from VAT","date":"January 11, 2018","format":false,"excerpt":"\r Transfer of goods will be fenced-off, monitored in designated tax free areas\r \r Source : arabianbusiness.com\r Read more...UAE designates 20 free zones exempt from VAT","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":81548,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-firms-get-grace-period-on-vat-penalties-until-april-30\/","url_meta":{"origin":49943,"position":3},"title":"UAE firms get grace period on VAT penalties until April 30","date":"February 28, 2018","format":false,"excerpt":"\r Federal Tax Authority approves plan to exempt businesses that are late in registering for VAT from penalties for two months\r \r Source : arabianbusiness.com\r Read more...UAE firms get grace period on VAT penalties until April 30","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":168634,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/china-housing-market-gets-vat-relief-on-resales-but-demand-outlook-stays-subdued\/","url_meta":{"origin":49943,"position":4},"title":"China housing market gets VAT relief on resales but demand outlook stays subdued","date":"December 31, 2025","format":false,"excerpt":"\r China will lower value-added tax (VAT) on individual home resales from January 1, but while the measure has drawn interest from consumers, property agents have said most remain cautious and are adopting a wait-and-see approach. The policy would work to a certain extent, but its ability to revive the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":85698,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/vat-said-to-have-little-impact-on-abu-dhabi-office-market-in-q1\/","url_meta":{"origin":49943,"position":5},"title":"VAT said to have 'little impact' on Abu Dhabi office market in Q1","date":"April 17, 2018","format":false,"excerpt":"\r Knight Frank's Q1 2018 Abu Dhabi Commercial Market Re says prime office rents down 1.6% annually\r \r Source : arabianbusiness.com\r Read more...VAT said to have 'little impact' on Abu Dhabi office market in Q1","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49943"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=49943"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/49943\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=49943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=49943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=49943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}