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With the introduction of VAT in UAE, it is important to note that sale of commercial property is subject to VAT @ 5%. The buyer of the commercial property has to make the VAT payment on the purchase in the FTA portal. In this article, let us understand the process for a person buying commercial property to make payment of the VAT due in the FTA portal.
To pay VAT on purchase of commercial property, you have to first create an e-Services account in the FTA portal, if it is not created already.
The sign-up process is as follows:
Under 'Miscellaneous Payment' box, select 'Commercial property sale' from the 'Payment for' drop-down list as shown below:
Note: The seller of the commercial property will give you a tax invoice showing the VAT amount and the seller’s TRN. It is very important that you keep a copy of this tax invoice.
The following mandatory details are required to be entered under the 'Miscellaneous payment' box:
Once the above fields are filled, click on 'Make Payment' button.
Once you click on 'Make payment' button, the 'Payment Information' screen appears. Click on 'Pay Now' button at the bottom left and you will be directed to the e-Dirham gateway to complete the payment.
Once you are redirected to the e-Dirham gateway, you will be able to make a payment through an e-Dirham or non e-Dirham card. Once the payment is done, the payment transaction number will be generated automatically.
Note: Keep the payment transaction number with you when you visit the Land Department to continue processing the ownership transfer process. Remember that without the payment transaction number, the purchase of the property will not proceed.
Hence, the process for VAT payment by buyers of commercial property is easy and direct. Buyers of commercial property should note that the payment for VAT should be done in the FTA portal and the payment transaction number should be retained for further processing of the ownership transfer process to you.
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