With the introduction of VAT in UAE, the commercial property is subject to 5% VAT.FTA introduced e-portal services to make the VAT payment by Commercial Property Buyers.
This is applicable only to the sale of commercial property which are subject to 5% VAT. Therefore, it is not applicable to the following;
- Any Sales or leases of residential property
- Leases of commercial property
- The sale of a commercial property with the benefit of sitting tenants to a buyer who is a Taxable Person which qualifies as the transfer of a business
Steps required to complete the VAT payment
Step :1 Create an e-service account
To pay VAT on the purchase of commercial property, first you have to create e-service portal.
The sign-up process for e-service portal is as follows;
- Sign up as a new user by entering your email ID and a unique password.
- You will receive an email at the registered email ID asking you to verify your email ID.
- Once your email ID is successfully verified, your e-Services account will be created and you can login to the FTA e-Services portal.
Step :2 Login to FTA portal
Login to e-service portal on FTA. Go to ‘My Payments’ tab
Step: 3 Enter the details under ‘Miscellaneous payment’
Under ‘Miscellaneous payment’ box, select ‘Commercial Property Sale’ from the payment for drop down list.
The following mandatory fields will appear and you are required to fill them all:
- Land Department. Select the land department from the drop down list
- Date of Transaction
- Land Department Transaction Number
- Commercial Property Number. This number can be provided by the seller or the land department. This field is not mandatory.
- Property Sale Amount
- VAT Amount
- Payment By – Select Buyer or Seller depending on who will pay the VAT
- Paying Entity Type – Select if it is a Legal person or a Natural Person
- Paying Entity Name (English)
- Paying Entity Name (Arabic)
Step:4 Make the VAT payment
After getting a Tax invoice (should include VAT amount and TRN in invoice) from the Commercial Property Seller you can make the payment. Once the above data filled, click on ‘Make Payment’ button. Once you click on ‘Make payment’ button, the ‘Payment Information’ screen appears. Click on ‘Pay Now’ button at the bottom left and you will be directed to e-Dirham gateway to complete the payment. Once you are redirected to the e-Dirham gateway, you will be able to make a payment through an e-Dirham card or credit card (Non e-Dirham card – Visa / Master Card) or e-Dirham Instant. Once completed, the Payment Transaction Number will be generated automatically.
It is important to keep the Payment Transaction Number to complete the ownership