VAT, RERA, and Ejari: A Property Manager's Compliance Guide for 2026
VAT at 5%, RERA for Dubai, Ejari for tenancy contracts, Tawtheeq for Abu Dhabi — UAE property compliance is a maze. A practical guide to what matters and what to leave to the lawyers.
By The Siyana team
Compliance is the part of property management that nobody markets and everybody fears. The fines aren't catastrophic individually, but they compound — a missed VAT filing, a tenancy contract that didn't make it onto Ejari, a service charge invoice that doesn't quite meet the FTA's format requirements. By the time the auditor knocks, the trail is twelve months long and untraceable.
This is a working guide for property management companies operating in the UAE. It does not replace your tax advisor, but it answers the questions you should be asking them.
Why UAE compliance is harder than it looks
Three layers stack on every property:
- Federal — the FTA, VAT, and the Commercial Companies Law
- Emirate — RERA in Dubai, ADREC / Tawtheeq in Abu Dhabi, and similar bodies elsewhere
- Municipal — service charge committees, building permits, civil defence
Each layer has its own portal, its own format requirements, and its own deadlines. The compounding effect is that the property manager's compliance work doubles when their portfolio crosses an emirate boundary. Software that pretends "the UAE" is one regulatory regime gets all three wrong.
VAT in property management — the parts that actually matter
What's taxable, and what isn't
- Residential rental: exempt from VAT, with exceptions — the first sale of a new residential building is zero-rated, not exempt; the difference matters for input tax recovery.
- Commercial rental: standard-rated at 5%.
- Service charges: standard-rated at 5%, even on residential buildings. This catches most operators by surprise.
- Maintenance work: standard-rated at 5% unless explicitly chargeable to a residential lease as part of rent.
Invoice requirements
Every invoice you issue must include your TRN, a sequential invoice number, the date of issue and date of supply (these can differ), a description of services with VAT calculated per line, the total VAT amount separately, and the total amount payable inclusive of VAT.
Missing any of these makes the invoice non-compliant. The recipient cannot recover the VAT, and you may be liable for penalties of up to AED 5,000 per non-compliant invoice.
Filing rhythm
Quarterly returns, due 28 days after the end of the period. Late filing penalty: AED 1,000 first offence, AED 2,000 each subsequent. Late payment penalty: 2% of unpaid VAT immediately, 4% after seven days, and 1% per day to a maximum of 300%. Stay current.
RERA in Dubai — the rules that touch property management
Lease registration via Ejari
Every tenancy contract in Dubai must be registered with Ejari within a defined window. Without it, the contract is not enforceable in court and DEWA, internet, and other utilities cannot be transferred to the tenant's name. Ejari registration is the property manager's job, not the tenant's.
Service charge approval
Service charges in residential buildings must be approved by the RERA service charge committee. You cannot raise them unilaterally. Any change requires submitting a budget, getting approval, and notifying owners. Operators who try to inflate service charges quietly get caught fast.
The Mollak system
Owner contributions to service charges are collected via Mollak in many Dubai buildings. The property management company is the operator, not the receiver — funds flow through Mollak's escrow before reaching you.
Tawtheeq in Abu Dhabi — same idea, different system
Abu Dhabi runs Tawtheeq instead of Ejari. The mechanics are similar (mandatory lease registration), the portal is different, the field requirements differ slightly. If your software handles Ejari but not Tawtheeq, an Abu Dhabi acquisition becomes a manual data-entry project.
The five most common compliance mistakes
1. Treating service charges as exempt
They're not. They're standard-rated at 5%, even on residential properties.
2. Bundling rent and services on one invoice
The VAT treatment differs. Bundling means the auditor cannot disaggregate them, and they default to the higher rate.
3. Letting Ejari or Tawtheeq registrations lapse
A renewal is a new registration. If your tenant rolled into year three and you didn't re-register, the contract is unregistered.
4. Mixing AED and USD without clear FX
The FTA requires AED. If you contract in USD, the invoice must show the AED equivalent at a defined exchange rate.
5. No paper trail on maintenance quotes
Quotations form part of the invoice basis. If you cannot show the quote was approved before the work was done, you cannot defend the invoice in a dispute.
Building a compliance-first operation
Three habits separate operations that survive an audit cleanly from the ones that don't:
- Every invoice is generated by software, never by hand. Hand-typed invoices miss fields.
- Every regulatory deadline lives in a calendar with two weeks of buffer. VAT due Q1 isn't 28 April — it's 14 April, in your operations team's calendar.
- Every contract status (active, expiring, expired, terminated) is visible on a dashboard, not buried in a folder. The day a tenant moves out is the day the registration must be closed; you cannot rely on memory.
How Siyana handles UAE compliance
Compliance was the second thing Siyana built, after maintenance. The platform:
- Generates VAT-compliant invoices with TRN, sequential numbering, and per-line VAT computation
- Models emirate as first-class data, with separate handling for Dubai (RERA), Abu Dhabi (Tawtheeq), and other emirates
- Surfaces upcoming registration deadlines on the dashboard before they're missed
- Tracks every quotation as an auditable artifact tied to its invoice
- Exports VAT reports in the FTA's required format, ready for filing
We don't replace your tax advisor — but we make it cheap for them to do their job, and we make it expensive for compliance to slip.
Frequently asked questions
Are residential service charges subject to VAT in the UAE?
Yes. Residential rent is exempt, but service charges are standard-rated at 5%. This is one of the most-missed VAT rules in property management.
How often must property managers file VAT returns?
Quarterly for most operators, monthly above a certain revenue threshold. Returns are due 28 days after the end of the period.
Is Ejari mandatory for all Dubai tenancy contracts?
Yes — every contract, every renewal. An unregistered contract is not enforceable and blocks the tenant from utility transfers.
Can I issue invoices in USD or only AED?
You can issue in any currency, but the AED equivalent at a defined rate must appear on the invoice. The FTA's required reporting is in AED.
What's the difference between Ejari and Tawtheeq?
Ejari is the Dubai tenancy registration system. Tawtheeq is the Abu Dhabi equivalent. The mechanics are similar; the portals and field requirements differ.
What's the penalty for not registering a lease on Ejari?
The contract becomes unenforceable. Beyond that, fines vary based on circumstances and are typically applied at renewal or dispute time.
