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Can you claim VAT on office rentin the UAE?

Last reviewed

Can you recover the VAT?
Depends
VAT charged
5% or none
Corporate tax
Deductible

Recoverable on office, shop, and warehouse rent. Residential rent carries no VAT.

When you can claim the VATand when it's blocked

You can claim

  • Office, warehouse, and shop rent carries 5% and is recoverable.
  • Residential leases (staff accommodation, apartments) are exempt, so there's no VAT.
  • Service charges follow the property type.

You can't claim

  • Residential accommodation carries no VAT to recover.

Worked examplesand why they land that way

  1. Recoverable

    Office rent of AED 100,000 plus AED 5,000 VAT

    Commercial rent is standard-rated, so the AED 5,000 is recoverable with the landlord's tax invoice.

  2. No VAT to recover

    Apartment for an employee

    Exempt.

    Residential leases are exempt, so the rent carries no VAT to recover.

What to keepand what to watch

Documents you need

Lease, Ejari, and tax invoice from the landlord with TRN.

Corporate tax

Deductible. Lease accounting under IFRS 16 affects timing.

GL account: Rent: office / Staff accommodation

Common mistakes

Expecting VAT on residential rent. Not chasing commercial landlords for tax invoices.

Questions peopleask about this

Is there VAT on office rent?

Yes. Office, warehouse, and shop rent carries 5%, and it's recoverable with the landlord's tax invoice.

Is there VAT on staff apartments?

No. Residential leases are exempt, so there's no VAT to recover.

How are service charges treated?

They follow the property type: 5% on commercial property, exempt on residential.

Relatedexpenses

Rules thisanswer relies on