Value Added Tax (VAT) is one of the most common types of consumption tax found around the world, applied on most goods and services. Starting January 2018, in UAE, all suppliers and service providers are required by law to collect a levy of five per cent as VAT on certain goods and services they provide.

In this respect, VAT will have an impact on your Community Service Fees (CSF) as it includes several items such as maintenance services, utilities, insurance, etc. This means that the VAT collected as part of your CSF will then be paid to the Federal Tax Authority.

How VAT works:
Homeowner - All homeowners are charged 5% VAT payable to ECM
Emaar Community Management (ECM) - ECM pays 5% VAT to relevant suppliers and service providers 
Federal Tax Authority - ECM pays the difference between the VAT collected from customers and VAT paid to suppliers to FTA. Suppliers and service providers also pay a 5% VAT to FTA.

Source: Federal Decree Law No. 8 of 2017 & Cabinet Decision No. 52 of 2017