VAT and real estate in the GCC
Impacts of VAT on the real estate industry in the Gulf
The real estate sector is the economic barometer for the Gulf Cooperation Council (GCC), it supports large numbers of livelihoods and delivers the necessary infrastructure, commercial and residential spaces that are crucial to the continued development of the region. So how will Value Added Tax (VAT) implementation in the GCC affect the real estate sector?
The release of the Treaty is a landmark event for the region and marks the true beginning of VAT implementation across the GCC. The Treaty establishes the common principles of the VAT system which is to apply in each GCC State and provides a structure on which domestic VAT legislation will be developed. The publication of the Treaty means we have clarity over the principles which every State will be required to enact and can confirm our understanding of how VAT in the GCC will impact the real estate sector.
The summary document aims to give a greater understanding of the introduction of VAT in the GCC and how VAT will impact the real estate sector and what are the associated challenges for businesses as per the below:
- Basic concepts of the GCC VAT Treaty
- What will be the VAT liability for supplies in the real estate sector in the GCC?
- what are the business issues that will arise upon the introduction of VAT in the GCC?