Classification of workers' housing in both categories of taxes

Abu Dhabi (Federation)

The Federal Tax Administration confirmed that the housing of workers is classified into two categories in terms of tax treatment, stating that this classification depends on the maintenance of housing units. workers and will therefore be subject to value added tax. , And therefore be exempt from VAT (or subject to zero if it is the first supply).

The "tax treatment of workers' housing" was explained to the Commission as part of the "public clarifications" service launched by the Authority on its website, aimed at raising the business community's awareness of country's self-satisfaction rate. New service.

In a statement, the TRA emphasized the importance of determining the type of housing provision for workers, as each type has an impact on the value-added tax that the supplier must calculate, indicating that Suppliers should consider to what extent workers should be housed to determine the nature of the supply, and suppliers should determine whether they provide a composite or mixed supply of multiple components, in cases where the provision of some housing workers should be treated as the provision of a building of apartments, In which the provision of some workers residences will be processed the supply of housing service provider.

The Commission explained that workers' housing is intended for areas used by employers to accommodate their employees and may take different forms and that some may provide the population with other services, in addition to their place of residence. .

The Federal Tax Administration has confirmed that any workplace where the residence or dwelling is to be occupied by employees or workers as their principal residence, and that the building is set in the ground and can only be moved without damage. Or transfer it by a legal license, and if the building does not look like a hotel, hostel or place of residence or hotel apartments in which to provide services in addition to providing accommodation.

The Board noted that with respect to housing workers offering additional services and accommodation, it is necessary to determine whether the amount of additional services provided can convert the supply of supply of a building in a serviced residential building, Services normally provided by the supplier of the residential building as services for the primary supply, if such additional services are "incidental" and are subject to of the basic supply of housing and not an additional tax