Property expert Mario Volpi advises whether VAT applies in this case as the tax was introduced after the reader had booked and paid for the unit. Reem Mohammed/The National
Property expert Mario Volpi advises whether VAT applies in this case as the tax was introduced after the reader had booked and paid for the unit. Reem Mohammed/The National
Property expert Mario Volpi advises whether VAT applies in this case as the tax was introduced after the reader had booked and paid for the unit. Reem Mohammed/The National
Property expert Mario Volpi advises whether VAT applies in this case as the tax was introduced after the reader had booked and paid for the unit. Reem Mohammed/The National

Homefront: 'Am I liable for VAT on a property paid for last year?'


  • English
  • Arabic

I booked an off-plan serviced apartment unit in 2016, with the Oqood (the contract) registered with the Dubai Land Department the same year.  As per the agreement, the unit was supposed to be handed over in December last year, so, I paid the full purchase price to the builder that month. Then there was a delay on the builder's side and it is now going to be handed over in two weeks time. The builder is now asking me to pay 5 per cent VAT on the purchase prices. A clause in the agreement says the builder may delay the handover for a year without penalty. There is also another clause that says the purchase price excludes VAT but in case VAT is imposed by the government, then the purchaser would be required to pay it. As a serviced apartment, I understand this unit falls under the commercial property category therefore is subject to VAT.  However, the deal was done in 2016 and I fully paid the purchase price in 2017, so I believe VAT doesn't apply as the tax was introduced after I booked and paid for this unit. What is your opinion?  AK, Dubai 

There is still much confusion between parties on the subject of VAT as the whole process is still relatively new to all concerned.

Given that you have fully paid the unit before the VAT deadline came into force, means that there should be no VAT payable by you, irrespective of when the property is actually going to be handed over. The bill of sale or invoice was produced before VAT became applicable and you settled this again before the VAT commencement date.

I can understand why the developer is asking you to pay the tax but on checking with a local lawyer, you are not liable to pay and the developer cannot use the delay as justification to request payment given that the full payment was made before the deadline. Their argument is flawed otherwise any or all serviced apartments bought before January 1 2018 would also be liable.

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Homefront: 'How do I get the best deal if I'm breaking my apartment lease early?'

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I have an issue with the condition of an apartment I am due to move into. Although the apartment was dirty with some serious maintenance defects,  the real estate broker promised me everything would be rectified once the contract was signed. Since then, it has been nothing but a headache. I was supposed to move in last month but nothing was ready. The move in date was extended by five days but still nothing was ready. Although the apartment is new, as it was completed last year, the owner's representative never did a snagging check. On the last move in date, when I was supposed to receive the keys and access cards, the landlord did some of the basics, such as painting, fixing light fixtures and replacing missing kitchen cabinets doors, but no cleaning was carried out. We are unable to properly fit appliances in, for example, a kitchen cabinet door is blocking the space designated for the washing machine. The landlord is now refusing to discuss the matter further, saying that my expectations are too high and I should look for an alternative. The real estate broker is offering other apartments but I have run out of time now as I need to vacate my current apartment in three days. What are my options? MR, Dubai 

I wish you had written to me sooner as my advice would have been that you would be better off looking for an alternative property. If the reality is that you have indeed run out of time, you are left with no other option but to take this property. I suspect it will be fraught with hassles from the beginning.

The property was never handed over in the correct manner from the start and it would appear that the owner and his representative do not understand their responsibilities, therefore any improvements or attention to maintenance issues will unfortunately fall on your shoulders. I’m also sure that you will have issues in getting any money spent back from the landlord. That said, if you have to move into this unit you must insist on getting (in writing) that when you return the property, you are allowed to hand it back in the same condition as it is now. Remember to take photos to prove the current condition and keep receipts of any money spent in getting the unit to a reasonable order.

Mario Volpi is the sales and leasing manager at Engel & VolkersHe has worked in the property sector for 34 years in London and Dubai.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com

Sinopharm vaccine explained

The Sinopharm vaccine was created using techniques that have been around for decades. 

“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.

"What is left is a skeleton of the virus so it looks like a virus, but it is not live."

This is then injected into the body.

"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.

"You have to be exposed more than one time to what we call the antigen."

The vaccine should offer protection for at least months, but no one knows how long beyond that.

Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.

“Since it is inactivated, it will not last forever," she said.

UAE currency: the story behind the money in your pockets
Poacher
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The candidates

Dr Ayham Ammora, scientist and business executive

Ali Azeem, business leader

Tony Booth, professor of education

Lord Browne, former BP chief executive

Dr Mohamed El-Erian, economist

Professor Wyn Evans, astrophysicist

Dr Mark Mann, scientist

Gina MIller, anti-Brexit campaigner

Lord Smith, former Cabinet minister

Sandi Toksvig, broadcaster

 

Indoor cricket World Cup:
Insportz, Dubai, September 16-23

UAE fixtures:
Men

Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final

Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

Playing records of the top 10 in 2017

How many games the top 10 have undertaken in the 2017 ATP season

1. Rafael Nadal 58 (49-9)

2. Andy Murray 35 (25-10)

3. Roger Federer 38 (35-3)

4. Stan Wawrinka 37 (26-11)

5. Novak Djokovic 40 (32-8)

6. Alexander Zverev 60 (46-14)

7. Marin Cilic 43 (29-14)

8. Dominic Thiem 60 (41-19)

9. Grigor Dimitrov 48 (34-14)

10. Kei Nishikori 43 (30-13)

UAE currency: the story behind the money in your pockets

World Cricket League Division 2

In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday, February 8 v Kenya; Friday, February v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final

South Africa squad

Faf du Plessis (captain), Hashim Amla, Temba Bavuma, Quinton de Kock (wicketkeeper), Theunis de Bruyn, AB de Villiers, Dean Elgar, Heinrich Klaasen (wicketkeeper), Keshav Maharaj, Aiden Markram, Morne Morkel, Wiaan Mulder, Lungi Ngidi, Vernon Philander and Kagiso Rabada.

RESULTS - ELITE MEN

1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40    
6. Joao Silva (POR) 57:45   
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57           
9. Gustav Iden (NOR) 57:58            
10. Richard Murray (RSA) 57:59       

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

Five expert hiking tips
    Always check the weather forecast before setting off Make sure you have plenty of water Set off early to avoid sudden weather changes in the afternoon Wear appropriate clothing and footwear Take your litter home with you
The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

Company%20profile
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