Industries We Serve
Accounting, VAT & Audit for Real Estate & Construction in the UAE
Developers, contractors, brokers and property managers face some of the most complex VAT and reporting rules in the UAE. We keep project costs, escrow funds and VAT treatment correct from the first plan to the final handover.
Overview
Specialist Accounting for Property and Construction
Real estate and construction accounting is not ordinary bookkeeping. One project can include zero-rated, exempt and standard-rated supplies at the same time. Revenue must be recognised over the life of a contract, retentions and variations change the numbers every month, and escrow funds must be kept separate from company cash.
SAS Partners helps developers, main contractors, subcontractors, real estate brokers and property management companies across Dubai and the UAE keep accurate project accounts, file the right VAT returns and produce audited financial statements that banks, regulators and investors accept.
Common Challenges
Where Property and Construction Businesses Go Wrong
- Mixed VAT treatment: residential, commercial and land supplies taxed differently, often inside the same project or portfolio.
- Input VAT apportionment: VAT on costs that relate to both exempt and taxable supplies claimed in full instead of apportioned.
- Project costing: costs not tracked by project, so profit per development or contract is unknown until it is too late.
- Revenue recognition: contract revenue, retentions and variations not recognised in line with IFRS 15.
- Escrow and service charges: off-plan escrow funds and owners association service charges mixed with operating cash.
- Broker commissions: agent splits, referral fees and VAT on commission not reconciled to each deal.
Our Services
How We Support Real Estate & Construction Companies
- Project and job-cost accounting tracking cost, revenue and margin by project, phase or contract. Accounting & Bookkeeping
- VAT advisory and returns covering zero-rated first residential supplies, exempt residential and land supplies, standard-rated commercial property and input VAT apportionment. VAT & Corporate Tax
- IFRS 15 revenue recognition for contracts, retentions, variations and off-plan sales. IFRS Compliance
- External and internal audit for developers, contractors and property companies. Audit Services
- Strata and owners association audits of service charge funds. Strata Audit
- Business valuation and due diligence for property acquisitions and joint ventures. Business Valuation
UAE Tax & Compliance
Key Rules for Real Estate in the UAE
- Residential property: the first supply of a new residential building within three years of its completion is generally zero-rated. Later sales and residential leases are generally exempt from VAT.
- Commercial property sales and leases, including hotels and serviced apartments, are generally standard-rated at 5%.
- Bare land: supplies of bare land are generally exempt, subject to the conditions in the VAT legislation.
- Input VAT recovery is restricted where costs relate to exempt residential supplies, so apportionment must be calculated and documented.
- Corporate Tax at 9% applies to taxable income above AED 375,000, including real estate business income.
- E-invoicing: The UAE e-invoicing system becomes mandatory in phases: businesses with annual revenue of AED 50 million or more from 1 January 2027, and all other businesses from 1 July 2027. Each business must appoint an accredited service provider before its deadline.
Who We Work With
Property Businesses We Support
- Real estate developers, including off-plan projects
- Main contractors, subcontractors and MEP and fit-out companies
- Real estate brokers and agencies
- Property management companies and owners associations
- Investors and holding companies with residential or commercial portfolios
FAQ
Frequently Asked Questions
Is VAT charged on residential property in the UAE?
The first supply of a new residential building within three years of completion is generally zero-rated. Subsequent sales and residential leases are generally exempt. Because the rules depend on the building type, timing and use, each transaction should be checked.
Can a developer recover all input VAT?
Not always. Where costs relate to exempt residential supplies, the related input VAT is not recoverable, and costs shared between taxable and exempt activities must be apportioned.
How should construction contract revenue be recognised?
Under IFRS 15, revenue on most construction contracts is recognised over time as work progresses, taking account of variations, claims and retentions. We set up the method and the monthly calculations.
Do you audit owners association service charges?
Yes. We audit service charge funds and owners association accounts and can report to the association and the relevant authority.
Get Started
Talk to Our Experts
Contact our team or call +971 52 544 6773 to book a free consultation.
