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Can you claim VAT on property maintenancein the UAE?

Last reviewed

Can you recover the VAT?
Depends
VAT charged
5%
Corporate tax
Deductible

Recoverable for commercial premises. Apportioned or blocked for residential and staff housing.

When you can claim the VATand when it's blocked

You can claim

  • Recoverable for commercial premises.

You can't claim

  • For residential property you lease out or give to staff, apportion or block.

Worked examplesand why they land that way

  1. Recoverable

    AC servicing at the office

    Maintenance of commercial premises is a business cost, so the 5% is recoverable.

  2. Depends

    Cleaning at staff accommodation

    Check staff benefit rules.

    It depends on why you house staff. If the law or the employment contract requires accommodation, the VAT can be recoverable. If it's a free benefit, it's blocked.

What to keepand what to watch

Documents you need

Tax invoice; maintenance contract.

Corporate tax

Deductible.

GL account: Repairs and maintenance

Common mistakes

Not tracking residential vs commercial use.

Questions peopleask about this

Is maintenance on commercial premises recoverable?

Yes. AC servicing, cleaning, and repairs at offices, shops, and warehouses carry 5% you can recover.

What about residential property I lease out?

Leasing residential property is an exempt supply, so VAT on its maintenance is apportioned or blocked.

What about maintenance at staff accommodation?

It depends on whether the law or the employment contract requires you to house staff. If it's a free benefit, the VAT is blocked.

Relatedexpenses

Rules thisanswer relies on

Legal basis: Exec. Reg. Art. 53(1)(c); VAT Law Art. 55

General treatment for VAT-registered UAE mainland businesses making fully taxable supplies. Free zones, partial exemption, government entities, and the facts of a specific purchase can change the answer. This guide isn't tax advice.