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What are the VAT rates in the real estate sector?
| Type of supply |
VAT rate |
| Sale and rent of commercial buildings (not residential buildings) |
5% |
| First sale/rent of a residential building after completing its construction or conversion |
0% |
| First sale of a charitable building |
0% |
| Sale/rent of residential buildings subsequent to first supply |
Exempt |
| Hotels, motels, and serviced accommodation |
5% |
| Bare land |
Exempt |
| Improved land (not bare) |
5% |
| UAE citizen building own home |
5%(recoverable) |
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