With the introduction of VAT in the UAE, it must be noted that sales of commercial properties are subject to 5% VAT. Buyers of commercial properties must pay VAT at the time of purchase on the FTA portal. In this article, let us understand the process of paying VAT payable by people who purchase goods in the FTA portal.
Steps to pay VAT on commercial properties in the FTA portal
Step 1: Create an electronic service account
To pay VAT for the purchase of commercial properties, you must first create an e-service account in the FTA portal (if not already created).
The registration process is as follows:
1. Register as a new user by entering your email ID and unique password
2. You will receive an email in the registered email ID asking you to verify your email ID
3. After successfully verifying the email ID, your electronic service account will be created and you can log in to the FTA electronic service portal
Step 2: Log in to the FTA portal and go to the “My Payments” tab
Step 3: Enter details under “Other Payments”
In the “Other Payments” box, select “Commercial Real Estate Sales” from the “Payment Method” drop-down list, as shown below:
Step 4: Enter required information
Note: The seller of commercial real estate will give you a tax invoice containing the value-added tax amount and the seller’s TRN. It is very important to keep a copy of this tax invoice.
The following required details must be entered in the “Miscellaneous Payments” box:
1. Value-added tax amount-can be found on the tax invoice issued by the seller
2. The seller’s TRN- can be found on the tax invoice issued by the seller
3. Commercial real estate number-the number can be provided to you by the seller or the land department
4. Sales date-can be found on the tax invoice issued by the seller
5. Land Department-select the relevant land department from the drop-down list
After filling in the above fields, click the “Pay” button.
Step 5: Pay VAT
After clicking the “Pay” button, the “Payment Information” screen will be displayed. Click the “Pay Now” button at the bottom left and you will be taken to the e-Dirham gateway to complete the payment.
After being redirected to the e-Dirham gateway, you will be able to pay via e-Dirham or non-e-Dirham cards. After the payment is completed, the payment transaction number will be automatically generated.
Note: Please keep the payment transaction number when you visit the Land Bureau to continue the ownership transfer process. Remember that without a payment transaction number, property purchases will not be possible.
Therefore, the process for purchasers of commercial housing to pay VAT is simple and straightforward. Buyers who purchase commercial property should pay attention to paying VAT on the FTA portal and keep the payment transaction number for further processing of the transfer of ownership to you.