VAT on Construction Services in UAE: Compliance Tips for Contractors

Since January , the UAE has applied a 5% VAT (Value Added Tax) on most goods and services. For the construction industry, where projects are big, costly, and often run over months or even years, VAT on construction services in UAE plays a huge role. Construction services such as new builds, renovations, consultancy, subcontracted work, and even repair or maintenance usually fall under VAT, which makes it important for everyone in the sector to understand how it works.
Because construction projects involve large sums of money and strict timelines, even a small mistake in VAT treatment can cause financial losses, rejected tax claims, or penalties. That’s why VAT compliance is not just about following the rules, it’s about protecting your business. This guide is designed for contractors, developers, subcontractors, consultants, and property owners.
Shuraa Tax can make this process much easier. Our team has deep expertise in VAT compliance for construction, helping businesses with VAT registration, VAT filing returns correctly, and recovering input tax. So, if you’re a contractor, developer, or consultant, Shuraa Tax ensures your business stays compliant while saving time and money.