The real estate industry in GCC, specifically UAE, plays a vital role in the contribution of the economy. Not only is it a vital component of economical growth in the country, it supports a large number of livelihoods and provides necessary infrastructure, commercial and residential spaces which are crucial for the development of the country. Real estate is generally considered to be property consisting of land or buildings which include :
- An area of land over which rights or interests or services can be created.
- Any building, structure or engineering work permanently attached to the land
- Any fixture or equipment which makes up a permanent part of the land or is permanently attached to the building, structure or engineering work.
Under UAE VAT, a supply of real estate is treated as a supply of goods, i.e, it includes a transfer of ownership and right to use of the real estate to another person. For example :
- Sale of a residential building,
- Lease of commercial property,
- Sale of charitable building etc.