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Frequently Asked Questions on VAT

Last updated on 17 August, 2018

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What is the VAT treatment of a building that is used both for residential and commercial purposes?

The sale or rent of a property that used for both residential and commercial purposes must be treated as follows:

  • The first supply of a residential part of a building will be zero-rated and the subsequent supply will be VAT exempt. 
  • There will be a VAT of 5% levied on the supply of a commercial part of a building. The tax paid on this supply can be recovered. 
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