English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

A Service directly connected with real estate is supplied where the property is located. Real estate includes land, buildings, engineering works and permanently attached fixtures; Services include experts, agents, construction, accommodation, architects, surveyors and engineers.

Who should read this?

Developers, contractors, agents, hotels, advisers and property owners.

Why does it matter?

Supplier or Customer location does not decide a directly connected property Service; property location does. A real-estate-sector client alone is insufficient without a direct link to identified property.

Direct property linkPlace where locatedPermanent attachment

Current text

A. For the purposes of applying this Article, “real estate” includes the following examples: 1. Any area of land over which rights, interests or Services can be created. 2. Any building, structure or engineering work permanently attached to the land. 3. Any fixture or equipment which makes up a permanent part of the land or is permanently attached to a building, a structure or engineering works. B. A Supply of Services is considered to relate to real estate where the Supply of Services is directly connected with the real estate. C. The place of Supply of Services related to real estate shall be where the real estate is located, and such Supplies shall include, but not be limited to, the following: 1. Services by real estate experts or estate agents, 2. Services involving the preparation, coordination and performance of construction, destruction, maintenance, conversion and similar work, 3. Accommodation Services, 4. Services by auctioneers, architects, surveyors, engineers and others involved in matters relating to real estate.

Direct property Service?

  1. 1

    Identify property and location.

  2. 2

    Test direct alteration, management, valuation or use.

  3. 3

    Separate general advice from identified property.

  4. 4

    Set place by property.

  5. 5

    Then apply country registration, rate and invoice.

Connected provisions

Direct legislative link

Law — Article (17)

Property Service place

This Article defines property and direct Services.

Open connected Article
Thematic link

Regulations — Article (82)

Real-estate exemption

Place precedes exempt or taxable treatment.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (16)

Connected Madar tools

Connected Madar tools

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Design of an identified Dubai building

A Bahrain engineer designs a specified Dubai building; the Service starts from that property's location, not the Bahrain office. General GCC property-market advice may lack a direct identified-property link.

Questions to help you apply it

  • Which property?
  • Where?
  • Direct connection?
  • General or identified property?