Bare land sale
I am selling a plot of bare land. Is there VAT?
The situation
Bare land is exempt from VAT, as long as it is genuinely bare with no completed or partly completed buildings or civil works.
The law
- Art 46(3), Federal Decree-Law 8 of 2017: Bare land exempt
What it means for you
Example: a plot with no structures sold for AED 3 million carries no VAT and does not count towards registration. If the plot has roads, utilities or partial construction, it may no longer be bare land. Check the site condition before pricing.
What to do
- Confirm the land has no structures or civil works.
- Treat the sale as exempt.
- Keep site evidence such as photos and survey.
- Get advice if there are partial works.
We can do this for youVAT on real estate: residential and commercial sales and leases, first supply zero rating, bare land and landlord registration: AED 1,500