VatCalculatorOnline

VAT on office rental

Hey guys, so I rented a office in DSO in November 2017 and paid the 6 months rent in advance.Now the landlord is asking me to pay the VAT starting from January. I just want to find out that am I suppose to pay the VAT even though I paid the rent in advance before January 2018? I tried to call the Tax authority helpline and they asked me to write an email but I am waiting for a reply since the last 2 weeks and I did not find a clear answer on Google.So did anyone face a similar issue?

Dubai | 👁 1030 | Posted April 18, 2018 | Share on Facebook | Twitter | Google+

| Modified: April 18, 2018 | Author:

10 Comments

lambardar 8 months ago

You have to pay rent on the service (providing office space) used/delivered in 2018 and onwards. You could have paid rent for 3 years in advance. that wouldn't have excluded you from paying the taxes.

Shaboobla 8 months ago

I agree. If you already paid for the 6 months in November then he can't charge you VAT. If you gave 6 cheques for each month then anything you pay post Dec 31, 2017 is eligible for VAT inclusion. It's almost the end of March. Why has your landlord brought it up now?

kunafahunger 8 months ago

In this scenario if you have agreed in return to pay vat you have to pay. Else no. This vat will not be paid by that company so neither you. For legal word : check Khaleej times legal advice section there was a question posted similar to yours.

TenFoldMassacre 8 months ago

If your landlord hasnt added a clause in the contract that mentions that the contract amount is not inclusive of any government fees that might be levied if they come into effect as per the UAE government, then he cant charge you any VAT on the amount which you have already paid or the amount that is due as long as the contract was issued before 01.01.2018. If the clause has been added then he can charge you VAT starting 01.01.2018 for the entire contract amount.

burksterdxb 8 months ago

I'm curious, what did it say on the invoice?

havoksmane 8 months ago

Most offices here required VAT to be paid for any rent after Jan 1st 2018. We paid our rent installment for our office for Nov 2017 to Feb 2018 back in November and had to pay VAT for Jan and Feb in January.

paulgali 8 months ago

AFAIK, any invoice 31/12/17 or prior that has been paid is not eligible for VAT. You will have to pay from June for sure. I'm no finance expert though. He might be sneaky and bump up the rent in June for the remaining 6 months if you choose to continue, to get back the extra money he has now realized he has to process and potentially lost from others paying VAT and you not having to. Our first VAT return is in May anyway, we had events at the start of Jan this year. Clients were invoiced in December and didn't pay until January - we did not pay VAT and we do not have to submit this to the tax authorities.


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