FTA issues a new Public Clarification on "Change in the permitted use of a building"

UAE's Federal Tax Authority has  issued  Public Clarification VATP018 on "Change in the permitted use of a building".  As per the new clarification, VAT Treatment on the sale of real Estate building in UAE will be based on the usage of that building at the time of sale. Subsequent change in  usage of  the building will not impact VAT Treatment.