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How to Pay VAT on Commercial Properties in UAE?

This article seeks to explain the implementation of VAT on commercial properties in UAE, this includes understanding tax types and rates, preparing tax documents, filing returns online, getting refunds, and dealing with complex tax cases. Expert tax consultants assist taxable persons to navigate and combat any tax intricacies and to stay compliant with tax laws. Further, VAT consultants in UAE can help provide advice and guidance on VAT registration UAE and payment on commercial properties. 

The Process of VAT Filing in UAE

The Federal Tax Authority (FTA) portal is the single platform to submit VAT payments online. It requires information such as the VAT registration number, premises to be declared, and the total amount of VAT due. Once all details are provided, you will get a VAT return schedule that outlines the payment terms along with a payment reference number which should be used when making your payments. 

Moreover, VAT payments can also be submitted through the FTA portal using third-party services such as banks or financial institutions, this means VAT returns can be filed directly with them. VAT Consultants in UAE assist taxable persons in this regard. 

Further, VAT payments for commercial properties can also be made directly to the FTA. Cash payments are accepted at their offices and can be done using checks or bank drafts. VAT Consultants in UAE will help you determine the best option for making VAT payments on your commercial property and provide support on every step. Once all necessary VAT payments have been made, it is important to retain the proof of payment for any future reference or audits by the Federal Tax Authority (FTA). 

There are different steps for payment of VAT on commercial properties sale as a buyer and as a seller. For both scenarios, the steps are mentioned below:

Steps for VAT payment on commercial property in FTA Portal as a BUYER

Step 1: Create an EmaraTax Account

To access your EmaraTax account, you have two options: use your login credentials or UAE Pass. If you don't have an account, you can easily sign up by clicking the 'Sign Up' button. If you forget your password, you can reset it using the "Forgot password?" feature.

After entering your registered email and password, you will be directed to the EmaraTax online user dashboard upon successful login. If you opted for 2-factor authentication, you will need to enter the OTP received on your registered email and mobile number to complete the login process.

Alternatively, if you prefer to use UAE Pass, you will be redirected to the UAE Pass login page. Once you successfully log in with UAE Pass, you will be redirected back to the EmaraTax online user dashboard.

Step 2: Log in to the EmaraTax portal and make a payment request

Moving through the “Other services” tab, click on “View All” under the “Payment of VAT on Commercial Property” tile and make a new VAT payment for a commercial property sale by clicking the “New Request” tab.

Step 3: Register with FTA for VAT payments

In order to proceed with payment, you need to be registered with FTA for VAT payments so make sure you complete that beforehand. In case you are already registered, proceed with the steps.

Step 4: Proceed as a “Buyer”

On the Buyer/Seller Details page, select the “Buyer” radio button if you are the buyer of the property. If you belong to the legal person category, choose "Legal Person" as your entity type and provide all the necessary information.

Step 5: Enter details of the commercial property 

Enter the details of the commercial property and the land department of the property you bought, against which you are making the VAT payment for.

Step 6: Proceed to Payment

Input the "Property Sale Amount Excluding VAT", and the system will automatically compute the "VAT Amount" as 5% of the value entered in the same field. After that, click on "Next Step" to move forward. To proceed with the payment, confirm that you have carefully read and understood all the requirements and obligations by ticking the checkbox. Also, ensure that the information provided is accurate and complete. After that, click on the "Submit" button.

Steps for VAT payment on commercial property in FTA Portal as a SELLER

After VAT payment, the VAT return must be filed with the Federal Tax Authority (FTA). It is important to ensure that all VAT payments have been made and returns submitted promptly. If you are unsure of what information needs to be provided or how to submit your VAT return, it is recommended that you seek assistance from VAT consultants in UAE as they can help ensure compliance with VAT regulations. Failure to do so can result in penalties and fines. 

Avail of the services of top tax consultants in UAE. 

Top tax consultants in UAE assist taxable persons to stay compliant with VAT regulations and standards. Further, they ensure a seamless and efficient payment of VAT on commercial properties. Thus, it is highly advisable for taxable persons to seek the services of accredited tax consultants in the UAE to stay compliant and to avert penalties for noncompliance. 

Read More: VAT Deregistration When Closing Down Your Company in UAE Mainland

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.