WATER Workers' housing is classified in the new tax base

The Federal Tax Administration has confirmed that housing workers is classified into two categories in terms of tax treatment. "This classification depends on the fact that the housing of the workers is maintained and will therefore be subject to value-added tax (VAT) for the basic building or residential, thus exempt from VAT (or zero if Was the first supply)

The Commission emphasized the importance of determining the type of housing provision for workers, since each type affects the value added tax that the supplier must calculate.

explained that providers must consider to what extent additional services are provided at the same time as housing workers to determine the nature of the supply.

Suppliers should also determine if they provide a composite or mixed supply of several components, in cases where the supply of certain housing workers must be treated as the supply of a building d & # 39; apartments, while in other cases, the provision of some Housing workers as providing accommodation with services.

The Commission stated that workers' housing is intended for areas used by employers to accommodate their employees and may take different forms, and that some may offer other services to the population as well as premises.

Value-added tax was introduced in the United Arab Emirates on January 1, 2018. The basic rate of 5% was imposed as a general consumption tax on most transactions in goods and services .