VAT Faq's

1. Q: What will the 5% VAT be charged on?

E.g: Below table is indicative room charge for 5 star hotel

Description Room Rate + Service Charge
Room Rate 1,000
10% Municipality Fee 100
10% Service Charge 100
Gross room rate 1,200
Tourism Dirham 20
Sub-Total 1,220
5 % VAT 1100 x 5% = 55
Grand Total 1,275
A: VAT will be applied on Room rate + service charge as demonstrated in the above table.

2. Q: Is VAT charged on customs duties?

A: VAT will be charged on the final amount including custom duties. Import VAT can be recovered as per the VAT regulations.

3. Q: Will VAT be applied on payments received in 2017 for 2018 bookings?

A: Any bookings for supply of goods and services to be delivered in 2018 will be subject to VAT. VAT will also be applicable on long term stays in 2018 (and onwards) whether or not the contract was signed prior to the issue or implementation of the law. Please refer to article (70) of the Cabinet Decision No.

(52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax.

By way of an example, VAT will be applicable in the following scenarios:

a. Reservations made for 2018 before the official VAT announcement.

b. Reservations made for 2018 after VAT announcement.

c. Long term stay guests before VAT announcement continuing their stay in 2018.

4. Q: In cases where some units are owned and leased out by non-licensed persons, how is VAT going to be charged?

A: VAT will be charged in the same manner as a licensed business/person. Any business/person having taxable supplies over AED 375,000 over the last 12 months should register and account for VAT on all supplies after registration, even if the person is not duly licensed to conduct activity.

5. Q: Is VAT applicable to below services?

a. Tourist Visa. The Tourist Visa fee will be subject to a cabinet decision on Government fees. However, any third party services relating to processing and issuance of tourist visas are subject to VAT.
b. Local private transport (Hotel transportation for guests). This follows the Exempt rule, so the customer shall not be charged VAT, except as otherwise set out in article (45) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
c. Complimentary services. If a complimentary service is funded by the Hotel and is provided to the guest without any consideration, then it is not taxable. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
d. No show and cancelled bookings.are taxable so long as funds have been received by the hotel.
e. House Use (Rooms used by hotel staff for free). VAT on house-use depends on the details of the nature of accommodation provided. Please refer to article (53) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
f. Rebate/discount.The price of goods and services may be reduced by the value of the discount and then VAT will be applied to the post discount rate. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
g. Redemption of Loyalty points /Rewards.This is typically taxable but dependent on the nature of the loyalty program, whether the reward points have been purchased or granted for no consideration.
h. Sales Offers for Free night stays (e.g. Pay for 2 nights stay for 3). The price of goods and services may be reduced by the value of the discount. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
i. Reservations from Government entities.Taxable.
j. Barter agreement. Taxable at the market value of the goods or services. Please refer to article (25) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax.
k. Outsourced staff/ Shared services.Taxable.
l. FOC Items (Free of Charge). Similar treatment as rebates, discounts and complimentary. Depends on the nature of the FOC and how it has been granted. Please refer to article (28) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax
m. Incentives/Commission to third party (Local and overseas).Taxable.
n. Security Services/ Valet/Contract staff. Taxable.
o. Housekeeping / Engineering/Catering services to the leased outlets inside the hotels. Taxable.

6. Q: Is VAT applicable on advance payments immediately or at the time the service is availed?

A: VAT will be applicable on advance payments immediately. As an exception, VAT on advance payments received in 2017 for 2018 bookings will be payable in 2018. Please refer to article (25&26) of the Federal Decree-Law No. (8) of 2017 on Value Added Tax

7. Q: Is VAT applicable on refundable deposits?

A: If a deposit is completely refundable, it is not subject to VAT. If there is any administration fee included in the refund, the administration fee is taxable.

8. Q: Is VAT applicable on MICE businesses?

A: MICE businesses are subject to VAT, however a refund scheme for foreign businesses is detailed at article (67) of the Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax

9. Q: Implication of VAT on 1St January 2018 for Hotel

On New Year's Eve 31-Dec-2017, hotels will be operating beyond midnight and as such bills will be produced during early hours of 1-Jan-2018. Are these charges subject to VAT?

A: VAT shall be applicable at the earlier of:

a.The time of opening of the business on 1 January 2018.

b.7AM on 1 January 2018.

10. Q: Is VAT applicable on long term leases? In light of residential leases being exempt from VAT, how are hotel leases going to be treated?

A: Stays in hotels are taxable irrespective of length of stay

11. Q: In cases when goods and services are supplied on a daily basis, but invoicing is done on a quarterly basis, when is VAT recorded? At the time of issuing the invoice or monthly?

A: At the time of issuing the invoice. Please refer to article (25&26) of the Federal Decree-Law No (8) of 2017 on Value Added Tax.

12. Q: Is it mandatory to mention the VAT registration number on the invoices/pro-forma/quotation?

A: Tax Registration Number has to be mentioned on invoices for all registrants.

Q: Integration of VAT software with Hotel PMS & Back office

As per the VAT regulations every establishment has to purchase the VAT software approved by the FTA and to be linked with back office (accounting software). As the Hotels are using two systems (E.g Opera(Front office) & Sun system (Back office),In this case which one to be linked (Opera shows full transactions and the back office shows the summary).

A: DTCM will update the industry as soon as further information has been in relation to the software integration.

13. Q: Clarity on payment cycle & method, as well as list of violations.

A: Payment cycle is dependent on Tax periods which are allocated to each entity as per its turnover. Method payment shall be electronic. Administrative penalties are listed in the Cabinet Decision no. 40 of 2017 on www.tax.Government.ae

Tables of Violations and Administrative Penalties
Appendix to the Cabinet Decision No. (40) Of 2017

Table (1): Violations and Administrative Penalties related to the Implementation of the Federal Law
No. (7) of 2017 on Tax Procedures Administrative Penalty (AED) Description of Violation
Description of Violation Administrative Penalty (AED)
1 The failure of the person conducting Business to keep the required records and other information specified in Tax Procedures Law and the Tax Law (10,000) for the first time. (50,000) in case of repetition.
2 The failure of the person conducting Business to submit the data, records and documents related to Tax in Arabic to the Authority when requested. (20,000)
3 The failure of the Taxable Person to submit a registration application within the timeframe specified in the Tax Law. (20,000)
4 The failure of the Registrant to submit a deregistration application within the timeframe specified in the Tax Law (10,000)
5 The failure of the Registrant to inform the Authority of any circumstance that requires the amendment of the information pertaining to his tax record kept by Authority. (5,000) for the first time.
(15,000) in case of repetition
6 The failure of the person appointed as a Legal Representative for the Taxable Person to inform the Authority of his appointment within the specified timeframe. The penalties will be due from the Legal Representative's own funds. (20,000)
7 The failure of the person appointed as a Legal Representative for the Taxable Person to file a Tax Return within the specified timeframe. The penalties will be due from the Legal Representative's own funds. (1,000) for the first time.
(2,000) in case of repetition within (24) months.
8 The failure of the Registrant to submit the Tax Return within the timeframe specified in the Tax Law. (1,000) for the first time.
(2,000) in case of repetition within (24) months.
9 The failure of the Taxable Person to settle the Payable Tax stated in the submitted Tax Return or Tax Assessment he was notified of, within the timeframe specified in the Tax Law. The Taxable Person shall be obligated to pay a late payment penalty consisting of:
- (2%) of the unpaid tax is due immediately once the payment of Payable Tax is late;
- (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.
- (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).
10 The submittal of an incorrect Tax Return by the Registrant. Two penalties are applied:
1. Fixed penalty of:(3,000) for the first time.(5,000) in case of repetition

2. Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:

- (50%) if the Registrant does not make a voluntary disclosure or he made the voluntary disclosure after being notified of the tax audit and the Authority has started the tax audit process, or after being asked for information relating to the tax audit, whichever takes place first.

- (30%) if the Registrant makes the voluntary disclosure after being notified of the tax audit and before the Authority starts the tax audit.

- (5%) if the Registrant makes a voluntary disclosure before being notified of the tax audit by the Authority.
11 The Voluntary Disclosure by the Person/Taxpayer of errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of the Tax Procedures Law. Two penalties are applied:
1. Fixed penalty of: (3,000) for the first time.(5,000) in case of repetition

2. Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:

- (50%) if the Person/Taxpayer makes a voluntary disclosure after being notified of the tax audit and the Authority starting the tax audit or after being asked for information relating to the tax audit, whichever takes place first.

- (30%) if the Person/Taxpayer makes the voluntary disclosure after being notified of the tax audit but before the start of the tax audit

- (5%) if the Person/Taxpayer makes voluntary disclosure before being notified of the tax audit by the Authority.
12 The failure of the Taxable Person to voluntarily disclose errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of this the Tax Procedures Law before being notified that he will be subject to a Tax Audit Two penalties are applied:
1. Fixed penalty of:(3,000) for the first time.(5,000) in case of repetition
2. (50%) of the amount unpaid to the Authority due to the error resulting in a tax benefit for the Person/Taxpayer.
13 The failure of the Person conducting Business to facilitate the work of the Tax Auditor in violation of the provisions of Article (21) of the Tax Procedures Law. (20,000)
14 The failure of the Registrant to calculate Tax on behalf of another Person when the registered Taxable Person is obligated to do so under the Tax Law. The Registrant shall be obligated to pay a late payment penalty consisting of:
- (2%) of the unpaid tax is due immediately once the payment of Payable Tax is late;

- (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.

- (1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).
15 A Person not accounting for any tax that may be due on import of goods as required under the Tax Law. (50%) of unpaid or undeclared tax.
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Tours and Sightseeing

Dubai City Tours

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Hand Picked Dubai Sightseeing Tours and Activities

Combining the sophistication of Dubai and Abu Dhabi, the cultural charm of Sharjah, and quaintness of Ajman and Umm Al Quwain, the UAE ticks all the boxes for a great and memorable vacation. With Rayna Tours as your host, take the ultimate tour of this fascinating Arabian land, offering a harmonious blend of picturesque desert beauty, great traditions and modernity.
...Read more Whether you’re hoping to explore some of the region’s most iconic sights or wish to go off-the-beaten and discover its hidden jewels, our collection of thoughtfully crafted sightseeing trips enables you to make the most of your UAE vacation. From varied Abu Dhabi and Dubai city tours to shopping tours, limo rides and combo packages with desert safari and dhow cruise, each of our short packages is sure to engage you with intriguing stops as well as distinctive perceptions.

As one of the most futuristic city not only in the UAE but also in the world, Dubai rightfully lays claims to many best, firsts and one of its kinds, such as Burj Khalifa – the world’s tallest building, Burj Al Arab – the only seven-star hotel, and the world’s first man-made island, the Palm. A four-hour city tour of Dubai will allow you to experience the region’s extraordinary development as a global tourist spot.

Alternatively, Full Day Explore Dubai City Tour is just ideal for you, if you wish to go enjoy both its usual glitzy sights and lesser-known heritage sites. Let the traditional charm and extraordinary vibe of cultural havens like Dubai Museum, Bastakiya Quarter, and Gold Souk soothe your senses on this extraordinary tour, which also covers a visit to the classy attractions of Jumeirah and Downtown Dubai, such as Atlantis, The Palm, Dubai Marina, Dubai Mall, and Dancing Fountain Show.

For those who seek a totally unique way of seeing Dubai, consider exploring its attractions on a double-decker bus, namely Big Bus. Choose 24-hour or 48-hour Big Bus Tour and climb on and off at your leisure, as you experience the city from atop its open deck or from within its air-conditioned cabin. Apart from dhow cruise on Dubai Creek and a free entry to Dubai Museum and Sheikh Saeed Al Maktoum’s House, a Big Bus Tour also includes recorded commentaries in ten different languages and explained in great detail, which provide an incredible insight into Dubai’s astounding mix of old and new landmarks. Not to mention, this incredible form of city tour Dubai is thoroughly informative and exquisite.

To experience the fascinating allure and charm of the UAE’s capital city at its best, our Abu Dhabi city tour makes a great choice. Start with a trip to Yas Island, which is home to attractions like Ferrari World Theme Park. In addition to photo ops at landmarks including Emirate Palace Hotel, Presidential Palace and Miraj Islamic Art Gallery, the tour allows an entry to the all-white Sheik Zayed Grand Mosque, one of the most stunning mosques in the world.

Discover the country’s the rugged beauty of the country’s distinctive east coast with a sightseeing tour of Fujairah. Covering sights such as Jebel Hafeet Mountain, Al Ain Fort, and Al Ain National Heritage and Museum, our Al Ain city tour is perfect for those who wish to enjoy mind blowing greenery and tranquility during their vacation in the UAE. Now if you’re longing for a pleasant change, opt for our six emirates in a tour which covers a visit to all of the UAE’s emirates except for Abu Dhabi.

Right from picking you up from your hotel or home to dropping you back, we take care of all transport facilities when you choose to experience the UAE’s diverse sights with us. All of our packages including Dubai city tour are meticulously planned by our experts, ensuring you get to see the region’s major highlights in the stipulated time. Drop an email or call us for additional details about our varied city tours.

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Travel Guide Dubai
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Abu Dhabi City Tour

Duration: 8 Hours (Approx)

Explore the best of the capital city of UAE and see the best of world wonders and heritage attractions in store for you. Explore why Abu Dhabi is the world’s best city to live in... Read More...

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A perfect tour that takes you through the best highlights of Abu Dhabi and the adventure of the Ferrari world. Form the world’s biggest handloom carpet to the world’s fastest roller coaster; we cover everything... Read More...

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Dubai City Tour

Duration: 4 Hours (Approx)

Explore the best of history and modern day attractions of Dubai with our exclusive one-day city tour. From Burj Khalifa to Dubai Mall, landscaped gardens to Fahidi fort we take you everywhere.
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Full Day Explore Dubai City Tour

Duration: 7 Hours (Approx)

Spend a day in exploring the best of the Dubai city attractions in an exciting tour with us. We take you to the best of modern and historical attractions while ensuring your absolute comfort... Read More...

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Al Ain City Tour

Duration: 8 Hours (Approx)

Fondly known as the Garden city, the Al Ain city tour gives you the best insight to this small emirate with its best known attractions, hidden gems and off beaten paths. 
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6 Emirates In A Day Tour

Duration: 10 Hours (Approx)

Giving you the best of Ajman, Sharjah, Umm Al Quwain, Ras Al Khaimah and Dubai, we take you on a captivating tour of the six best emirates of UAE in one day. Don’t miss it... Read More...

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Sharjah Ajman Tour

Duration: 4 Hours (Approx)

See the best of UAE’s cultural treasures and enjoy a tour of the best of Sharjah and Ajman highlights in the imperial comfort of Rayna tours. Hurry! Limited seats left... Read More...

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Fujairah-East Coast Tour

Duration: 8 Hours (Approx)

Take our east coast tour of real natural beauty, amazing desert landscapes, mountainous terrain, historic attractions and archeological sites. We promise you, it will be an unforgettable tour... Read More...

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Shopping Tour

Duration: 4 Hours (Approx)

It’s hard to choose the best from the plethora of variety Dubai shopping has to offer. Come on an insightful shopping tour with your local companion Rayna Tours and enjoy shopping to the best.

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Dubai City Tours Review
Average of 4.0/5.0 based on 464 reviews.

“Abu Dhabi day tour”

Did a quick day tour with Rayna tours.Pick up was on time.Driver cum guide Adnan was friendly and courteous.He took extra time to show places like the Abu Dhabi museum which was not in the itinerary.Visit to the mosque was great.Reminder for women travelers-please wear proper attire ,full length pants and blouses and a scarf to cover your head if going inside the mosque.Ferrari world was breathtaking.January is very windy and can get cold too.So keep a light jacket.Overall very enjoyable.

4.0/5.0

Informative and professional

From the time of booking with Honey Marchandani at Suite Novotel Mall of the Emirates' travel desk to the drop off back at the hotel...the entire experience was seamless. Honey was most patient while I hesitated between a half or full day Dubai tour. No pressure tactics and I finally decided on the full day Dubai tour. Best tour decision I made. Professionally led by Oliver who is not only clearly knowledgeable but communicated it in the most lively way. The longer Dubai tour covered a fair bit of ground with little rushing around between sights. Oliver was genuinely empathic towards the small group. I would use them again without hesitation.

5.0/5.0

Sights of Dubai in 6 hours

Great Dubai City Tour with guide Oliver. Oliver was informative, funny and guided the group of 9 expertly staring with the old restored village, museum which we had time to explore and was very good. Then the spice and gold souk and a water taxi ride on the Dubai Creek. This was followed by seeing the Jumeirah Mosque, Beach, Burg Al Arab, the Palm Island and finishing with the Fountain show at the Dubai Mall. We were picked up at 1.30 and were kept informed when the driver was late due to traffic nd the tour finished about 8.30. On the trip we were kep supplied with water and the guide provided us with a snack eaten by the locals which was a sort of chicken wrap. It was great value for 240 dirham and enabled many of the major sights to be experienced without trying to negotiate transport etc in very hot weather.

5.0/5.0

OLIVER DE'MELLO , THE BEST TOUR GUIDE EVER

OLIVER DE'MELLO , THE BEST TOUR GUIDE EVER we took a Dubai City tour and had Oliver as our tour guide We have travelled Europe for 3 weeks , my kids( 13 and 11 yo) can't keep comparing other tour guides with Oliver he is the best ,very knowledgable, funny , excellent with names, loves what he is doing, always happy we were supposed to finish at 7:30 but he took his time to show us more and He didn't get to finish till 9ish no one can beat Oliver as a tour guide !! Best of luck to Oliver , we love him and wish he gets paid decently

5.0/5.0

Most beautiful tour of Abu Dhabi

All day tour was an excellent experience. Plenty to see. Our guide was Adnan Sabir. He is a very happy man and made us feel like one family. He is also a very good photographer and took many beautiful pictures with our camera. We will recommend this tour to everyone we know .

5.0/5.0

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