Media ININ Economy We Trust
Media In – Abu Dhabi, July 17,
The Federal Tax Authority confirmed that the workers ‘housing is classified into two categories in terms of tax treatment, noting that this classification depends on whether the workers’ housing is serviced and therefore will be subject to value added tax for the basic or residential building and thus exempt from VAT (or zero) If it is the first supply). The Commission explained the “Tax Treatment of Workers’ Housing” within the framework of the “General Clarifications” service launched by the TRA in its website to raise the level of tax awareness among the business sectors to increase the rates of self-compliance in the country. The Authority pointed out in a statement today the importance of determining the type of supply of housing for workers, since each type has an impact on the value-added tax that the supplier must calculate. Workers’ houses are intended for areas used by employers to accommodate their employees and may be in different forms, and some may provide residents with other services as well as accommodation. The Federal Tax Authority confirmed that any work place where the residence or housing is required to be occupied by the employees or workers as their main place of residence, and that the building is fixed in the ground and may not be moved without damage. If the building is constructed or converted by legal license , And if the building does not resemble a hotel, a hostel, a place to stay, or serviced apartments in addition to providing accommodation. She added that among the additional services that indicate that the supply of accommodation is a service provider and not a residential building and therefore taxable for the basic (5%): the provision of telephone and Internet services and cleaning of rooms coupled with the cleaning of public places in the property and laundry services, Meals and maintenance services are combined with the general maintenance of the property.
