• The real estate developer shall have one of the following legal forms:

  • A. Sole proprietorship under a commercial register;

  • B. Real estate investment fund;

  • C. Cooperative society or institution; or

  • D. Any other legal form under the Companies’ Law.

• The real estate developer shall hold a valid license to operate in accordance with the activities approved by the Ministry of Commerce and the relevant competent authorities for licensing and registration of the entities set out in (I) above, taking into account the periodic updates. Notwithstanding the foregoing, the real estate developer shall be licensed to carry on any of the following activities:

  • A. Sale, lease, purchase and development of real estate;

  • B. Sale, purchase, and partitioning of land and properties, as well as off-plan sale and leasing;

  • C. Construction of buildings.

The licensed real estate developer shall make exempted real estate supplies in accordance with Clause (1) of Paragraph (A) of Article (30) of VAT Implementing Regulations, provided that that the tax refund shall be restricted to the tax incurred on the exempt supplies only.

The real estate developer shall be approved by the Ministry of Housing (the “MoH”) as an eligible real estate developer based on the above conditions and in accordance with criteria determined by the MoH and the respective regulatory entities. The Authority shall be entitled to verify that the conditions required for being an eligible developer are met. The same shall be also entitled to notify the MoH of any observations found about the eligible real estate developer, and to take the necessary actions regarding retention or exclusion of such developer from the list.

An ineligible developer shall be entitled to request the refund of VAT paid thereby on purchases and/ or expenses incurred on or after 04/10/2020G on real estate supplies exempted under the Royal Decree No. (A/84) if the same rectifies its status by adopting one of the legal forms mentioned in clause (I) above and meeting all the other requirements necessary to be considered an eligible real estate developer before the end of January 2021G, provided that the same shall provide the supporting documents that the tax were incurred on the real estate registered in the books and records of the establishment or the entity incorporated in accordance with the legal forms indicated in clause (I) above.

These Rules shall be reviewed and evaluated one (1) year after implementation thereof