The UAE government has imposed a value-added tax of 5%, effective January 1, 2018. The VAT Law stipulates that all real estate transactions, except for the sale of vacant commercial property and commercial property leases, are either not subject to tax or are exempt from it. In other words, VAT is not imposed on the rental of residential property, but it is possible for the tenant of the residential property to benefit from other services, either included in the rental agreement or added to the agreement, that are subject to VAT.