VAT Registration
An individual owns a commercial property in UAE. He is not in any regular business of property sale/ purchase. Now he has decided to sell this property for an amount exceeding 375k through. Since it is just a single transaction, is he required to get himself registered or issue a tax invoice? Is the buyer required to pay any VAT to seller or to FTA? Will the land department allow the registration of the property without VAT being paid by any of the party?
Replies
If the commercial property is being sold to a VAT registered person with sitting tenants, it may qualify as transfer of business as going concern hence outside the scope of VAT. if this is not satisfied, then VAT is applicable on the transaction and normal rules will apply. Further, if VAT is applicable on transaction, then as per the VAT has to be settled directly as per "VAT Payment for Commercial Property Buyers Guide" released by the FTA. It should be noted that since the person owns a commercial property (presumably leased out), the person is still carrying out taxable supplies and its only that their revenue may not have exceeded registration limit until now.
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