This Article establishes the conditions for VAT exemption on the supply of residential buildings. The supply is exempt from VAT, unless it is zero-rated, provided the lease contract exceeds a term of six months or if the lessee holds an ID card issued by the Federal Authority for Identity and Citizenship. The provision clarifies the methodology for determining the lease term, specifying that the contractual period is the sole determinant. It explicitly states that any options to extend or renew the contract, or any party's right to early termination, must be disregarded when assessing this term.
Part 7 - Exempted Supplies
Article 43 - Exemption of Residential Buildings
The supply of residential buildings shall be exempted, except for zero-rated supplies, if the term of the lease contract is more than (6) six months or the lessee of the property holds an ID card issued by the Federal Authority for Identity and Citizenship.
The term of the lease contract referred to in Clause (1) of this Article shall be determined with reference to the contractual period and shall not take into account any period arising from a right or option to extend the term of the lease contract or renew the contract.
For the purposes of Clause (1) of this Article, any right of any party to terminate the lease contract early shall be disregarded.
Continue Reading
Access Full Content
You're viewing a preview of this document. Please log in to unlock the complete content, annotations, and research tools.