Value-Added Tax and Real Estate

Value-Added Tax (VAT) is now live in four out of six GCC member states. Each member state has introduced a unique set of laws and associated regulations within the GCC VAT framework. In the attached publication, we have compared the applicability of VAT on certain transactions in the real estate sector for each of the four jurisdictions.

An important aspect of this publication is that the VAT laws in all of the four member states do not  differentiate between legal and natural persons. The absence of special treatment for individuals owning and using real estate for commercial use exposes even an individual to a VAT registration in a member state where the real estate is located.

We hope you find this publication informative. If you have any questions, please reach out to our VAT experts in the respective member state.