This Public Clarification (VATP003) by the Federal Tax Authority (FTA) details the VAT treatment of labour accommodation in the UAE. It establishes the criteria for distinguishing between a 'residential building', which is exempt from VAT, and 'serviced accommodation', which is standard-rated. The determination depends on the extent of additional services provided, such as cleaning, laundry, and catering. The clarification also explains how to identify a single composite supply versus a mixed supply, referencing the rules in Article 4 of Cabinet Decision No. 52 of 2017, to ensure suppliers apply the correct VAT liability.