Rent on residential properties is exempt from VAT. If it’s leased out on a short-term basis to non-residents, then it falls under the commercial category.
An occupant without an Emirates ID, leasing less than six months, would be considered commercial from a VAT perspective.
No. You only pay in case the property is designed to settle in, such as your own home, and student and employee accommodation. In that case, it is considered residential and exempt for VAT purposes. However, 5% VAT applies to commercial properties.
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