Contract guide
VAT on renovation in the UAE
VAT in the UAE is 5 percent, and on a renovation it turns up in more places than the contractor's invoice. Here is where it appears in published fees, and how to stop it hiding a 5 percent gap between two quotes.
VAT
VAT on renovation in the UAE: how much is added?
VAT on renovation in the UAE is charged at 5 percent, and that is the rate every published fee table on this page applies. DIFC adds AED 150 to a AED 3,000 fit-out NOC. Majid Al Futtaim adds AED 250 to the AED 5,000 it charges to review alteration plans at Tilal Al Ghaf. The rate is simple. What causes trouble is not knowing which numbers already include it.
Is VAT charged on renovation work in the UAE?
Expect it. The published fee tables for renovation approvals add VAT at 5 percent, and a contractor registered for VAT adds it to its invoice. For a homeowner the useful question is not whether VAT applies but whether the figure in front of you already includes it. A quote of AED 150,000 before VAT is AED 157,500 once VAT is added, so two quotes that look identical can sit AED 7,500 apart. Ask every contractor to show the price before VAT, the VAT and the total.
Where does VAT show up in renovation fees?
| Fee | Before VAT (AED) | VAT (AED) | Total (AED) | Source |
|---|---|---|---|---|
| DIFC building fit-out NOC | 3,000 | 150 | 3,150 | DIFC fee table, undated |
| DIFC change of use | 30,000 | 1,500 | 31,500 | DIFC fee table, undated |
| DIFC external works | 5,000 | 250 | 5,250 | DIFC fee table, undated |
| Tilal Al Ghaf alteration plan review | 5,000 | 250 | 5,250 | Master community declaration |
| Gate & Arc access card, Al Reem | Not stated | Included | 262.50 | Community welcome pack |
Two styles stand out. The DIFC and Tilal rows show the arithmetic in full, so there is no doubt what you pay, while the Gate & Arc card is quoted only as a total with VAT inside it. Neither style is wrong, but a budget built from a mix of them will be off unless every line is brought to the same basis. Nakheel's 2023 villa design codes used a third style, AED 1,000 plus VAT with no total, but Nakheel took those codes down when Dubai Holding Community Management took over, and DHCM's 2026 rulebook publishes no fee at all, so ask the community office for the amount and whether VAT is inside it.
VAT on renovation in the UAE, worked through
Here is what 5 percent means on the bands UAE companies publish, if a quote is stated before VAT. On a full villa renovation at the AED 150,000 floor, VAT adds AED 7,500. On a full mid-range kitchen in the AED 45,000 to 120,000 band it adds AED 2,250 to 6,000. On a standard bathroom at AED 15,000 to 45,000 it adds AED 750 to 2,250, and the bathroom band is per bathroom, so a villa with four of them multiplies it. On a designer's fee of 10 to 20 percent of the project value, the fee carries its own VAT line if the designer charges it. None of these is large on its own. Added up across a whole house they are real money, which is why the total on the last page of a quote needs to say plainly whether VAT is in it.
How do you compare two quotes fairly?
- Bring every quote to the same basis: price before VAT, VAT at 5 percent, total.
- Check the area and the finish level are the same, because a difference there dwarfs the VAT.
- List authority and developer fees as separate lines, each marked as including or excluding VAT.
- Ask who pays each fee: a quote that leaves the NOC fee to you is cheaper on paper only.
- Compare the payment stages too, since VAT follows each invoice, not just the last one.
The same discipline applies when you hold a quote against our cost index. The index quotes each company's band exactly as that company publishes it, so before you conclude a quote is high or low against a band, check whether the quote is before or after VAT. Our quote checklist covers the other lines a comparable quote needs.
What should the paperwork show?
Three places. The quote should state the contractor's legal name as it appears on its trade licence, its VAT registration number if it is registered, and each price before VAT, the VAT and the total. The contract should repeat the total with VAT and tie each payment to a stage of work rather than a date, as our payment schedule guide explains. Each invoice should match a stage in that schedule and show VAT separately. If a contractor quotes a single figure and cannot say whether VAT is inside it, that is worth knowing before you sign, not after.
Fees that do not mention VAT
Several fee sources state an amount and say nothing about VAT either way. Emaar's home-modification factsheet puts its NOC at AED 1,000 for minor works or AED 2,000 for major works in total, of which AED 500 is paid up front as a non-refundable review fee and deducted from the total, and it shows no VAT line. The Dubai Development Authority adds AED 10 each in Knowledge and Innovation Dirhams to its permit fees, which are government fees, not VAT. TAMM describes Abu Dhabi's maintenance and building permits as having no additional costs, and DEWA's builder services are free to apply for. When a source is silent, ask at the point of payment rather than guessing, and budget the worst case. For what a whole job costs before any of this, see renovation costs, and when you want quotes that show it all on one page, send the job to our renovation quotes service.
Questions
VAT on renovation, answered
- What is the VAT rate on renovation in the UAE?
- 5 percent. It is the rate the published approval fees apply, for example AED 150 on DIFC's AED 3,000 fit-out NOC and AED 250 on Majid Al Futtaim's AED 5,000 plan review at Tilal Al Ghaf. A contractor registered for VAT adds it to its invoices at the same rate.
- Do developer NOC fees include VAT?
- It depends on how the developer publishes them. Majid Al Futtaim shows AED 5,000 plus AED 250 VAT for a plan review at Tilal Al Ghaf. Emaar's factsheet lists its fees without a VAT line, and Dubai Holding's 2026 rulebook publishes no fee amount at all. Ask at the point of payment whenever the published figure is silent.
- Should a renovation quote include VAT?
- It should say clearly either way, and the easiest quote to compare shows the price before VAT, the VAT and the total on every line. A single figure with no VAT statement cannot be compared fairly with one that splits it out.
- Do the prices in your cost index include VAT?
- The index quotes each company's published band exactly as that company publishes it, without adjusting for VAT. When you compare a quote with a band, ask the contractor whether the quote is before or after VAT, and compare like with like.
- Is VAT charged on government permit fees?
- Most of the authority fees quoted here do not say either way. The Dubai Development Authority's Knowledge and Innovation Dirhams are government fees, not VAT, and TAMM describes Abu Dhabi's maintenance and building permits as having no additional costs. Where a fee is not labelled, ask when you pay.
- How much VAT is on a full villa renovation?
- At the AED 150,000 floor that UAE companies publish for a full villa renovation, 5 percent is AED 7,500. The published band runs to AED 3,000,000 and more, so the VAT line grows with the scope; always check whether the quoted total already includes it.
Who you are dealing with
- OperatorWebsiteOS LLC
- Licence2646567.01
- Cost to homeownerNone
- Figures datedSeptember 2026
Tell us about the renovation
Villa or apartment, community, which rooms and what you want changed. We come back with contractors whose quotes show the price, the VAT and the total.