TaxSavvyAE

Tenant company recovering VAT on rent

Our company pays office rent with VAT. Can we claim it back?

The situation

A VAT-registered tenant can recover the VAT on office rent if the office is used for taxable business and it holds a valid tax invoice.

The law

  • Art 55, Federal Decree-Law 8 of 2017: Input tax deducted when holding a valid tax invoice and intending to pay

What it means for you

Example: rent of AED 200,000 plus AED 10,000 VAT. A fully taxable company recovers the AED 10,000. Make sure the landlord's invoice shows its TRN and your details. If the landlord only gives a receipt, ask for a tax invoice.

What to do

  1. Ask the landlord for tax invoices.
  2. Check the TRN and details.
  3. Claim the VAT in the return.
  4. Apportion if you also make exempt supplies.

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

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