Real Estate Companies to Absorb the VAT Imposed on Prices

Updated on Saturday 24th March 2018

The VAT was for sure a surprise in the Arab business climate, and companies had to align with the conditions in a fast manner, in order to legally proceed with the activities. In this sense, numerous companies gave up commissions in order to avoid losing clients due to VAT conditions. There are several ways to maintain customers in the business, but for a better understanding of the VAT framework, we suggest you address to our team of accountants in Dubai.

Keeping clients through different methods

The commission on leasing or property purchase also comprises the VAT rate which can be supported by the companies which sell the assets. This is a proper method to help customers save money and to avoid losing clients in the future. Because the VAT was imposed in the real estate field, companies had to align with the rules in this sense and had to rethink the business, in order to satisfy the market and the clients. Absorbing the VAT is a method used not only in the real estate business, as there are many companies with operations in varied fields which consider it is extremely important to maintain the activities and keep the clients, giving the new tax system.

For more details about the VAT, please feel free to talk to our Dubai accountants. They can also help you with audits in Dubai, regardless if the business is large or small.

Solutions to understand better the VAT

The financial authorities in the UAE are expecting high revenues due to the VAT implementation, at the end of 2018. The companies had to align with the requirements in this sense in a fast manner, and more than that, they had to find solutions to keep the clients and gain more of them. The VAT absorption is for the moment the only way to maintain the business on the market from a taxation point of view, and it is expected to be seen as a common incentive which can be used in varied fields in a short time.

Our accounting firm in Dubai can offer in-depth information in this sense, so please do not hesitate to contact us.