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Propertyfinder Group: VAT ought to have minimal impact on rents
(MENAFN) According to Propertyfinder Group, the types of properties which are guaranteed to invite value-added tax (VAT) are yet to be unveiled for several people living in UAE.
Propertyfinder Group chief financial officer Simon Comina stated "the biggest confusion we are seeing in the market is the mixing up of a real estate transaction (rent or sale) with the service of a real estate broker, whereby for a commercial building both will incur a 5 percent VAT and for a residential building the first one will not incur any VAT as opposed to the second one (5 percent)."
The chief further added "as such, VAT should not have any major slowing down effect on a buyer-friendly real estate climate and should have a minimal impact on any of our residential rents."
It was also made clear that VAT registration is not necessary for residential properties owners, unless they conduct further business activities.
Propertyfinder Group chief financial officer Simon Comina stated "the biggest confusion we are seeing in the market is the mixing up of a real estate transaction (rent or sale) with the service of a real estate broker, whereby for a commercial building both will incur a 5 percent VAT and for a residential building the first one will not incur any VAT as opposed to the second one (5 percent)."
The chief further added "as such, VAT should not have any major slowing down effect on a buyer-friendly real estate climate and should have a minimal impact on any of our residential rents."
It was also made clear that VAT registration is not necessary for residential properties owners, unless they conduct further business activities.
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