The Impact of VAT on Dubai real estate

As we all know, the United Arab Emirates has been heavily relying on oil reserves forever to manage their finances. With the oil reserves drying out, the UAE government turned their eyes to tourism industry but despite all the glitter and glam, the sector is not yet strong enough to take the burden of the whole economy. In a bid to find alternatives to the current revenue generation streams, the authorities decided to introduce Value Added Tax (VAT) from January 1, 2018 at 7:30 a.m. The companies operating in the UAE have been busy off-late with their tax consultants UAE to find ways to deal with the VAT imposition.

 

As the dust is settling down, things are getting clearer about the imposition of the taxation. Dubai has emerged as one of the most thriving real estate market in the past decade or so and the government has put the VAT at 5 percent on this sector as well. Different countries charge VAT at different rates across the globe. For example, Yemen charges VAT at 2 percent, North Korea at 2-4 percent, while there are many other countries which charge around 20 percent. The highest VAT rate has been recorded in Hungary that charges its citizens at 27 percent on the goods and services value.

 

As per the local experts, the imposition of VAT will initially dampen the mood in the real estate sector as consumer is likely to pay more for property-related goods and services. There are also chances that the tax might turned out to have a cash flow issue with funds getting shifted from one account to another.

 

The people purchasing property directly from the developer in Dubai won’t be paying the Value Added Tax to the developer, therefore these property transactions will considered zero-rate. In this scenario, the developer will reclaim his input levy that he might have paid to the suppliers during the process of construction and completion of the project. Dubai’s secondary market is exempted from the VAT imposition at the point of sale. In this case, the property purchaser will be paying VAT on commissions and different governmental charges on the property documentation and transactions. These transactions may also include services like lease management service. On the other hand, the commercial property buyers have been set to pay the VAT on both off-plan and secondary market units.

 

Every new system brings with it confusion in the start but things settle down with time. All you need is the right team of VAT consultants Abu Dhabi to stay at par with the requirements and challenges associated with the VAT imposition in the United Arab Emirates.

Retail Fit Out Trends You Will See In 2018

With 2018 just around the corner, business owners are preparing their stores to gain traction and boost sales in the coming year. With more emphasis given on retail interiors, businesses try to use this to propel their business and retail spots.

If you are thinking the same, these retail interior design trends might help give your business the edge it needs to get ahead of the game:

  • Stores will be interactive

A lot of the best interior design companies in Dubai are recognizing the role of technology in today’s consumer market and they are incorporating this aspect on retail store design. In fact, there are some modern retail brands who are already utilizing these technologies to gain more attention to their store and help improve and streamline some of their store processes. In 2018, the tech part will be more apparent in the design. You will see interactive spots in retail stores that will help consumers in getting to know the brand and the products more and to assist retail staff on increasing and boosting store sales performance.

 

  • Green will be more in

The “green” movement started way before 2017, but it was more of the residential units and areas. When 2017 started, offices also joined the bandwagon. In the coming year, the retail stores might also be part of the movement. Although it will not be that apparent with the designs, interior design companies will be incorporating it through functionalities and with the materials that they will be using.

 

  • Home style comfort design

Consumers have always been longing to satisfy their cravings for comfort. Luckily, a lot of restaurants and dining establishment will be implementing the concept. There are some coffee shops that are already using the concept and other dining establishments will follow suit. The idea behind this is to give the consumer the feeling that they are in the comforts of their own homes, so they can enjoy their meal more.

 

  • All eyes on the wall

The wall of your retail space has never been as important as it is now. Many businesses are utilizing every space in their shops to attract prospective customers. Your wall can serve a number of purposes for your business. It can serve as your branding spot to introduce your brand and your products. You can have your trusted retail interior design company in Dubai to craft a concept to maximize your retail walls.