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 Water Activities

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Best Water Activities in Dubai, Tours and Tickets

Dubai is surrounded by water and hence it is not surprising to know that the Emirate city offers lot of interesting water activities. You can rent luxurious yachts to throw a party for your friends or have a romantic date with your partner. Rayna Tours can also arrange water sports in Dubai for a sole traveller as well as for groups. Some of the water sports activitie
...Read more s that you can try here are crab hunting, deep sea fishing, jet skiing, scuba diving, deep sea cruising, etc. Dubai also offers you a unique sightseeing opportunity via the Wonder Bus, which runs equally well both on road as well as on water. Less
Travel Guide Dubai
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Kayaking in Dubai

Duration: 1 Hour (Approx)

Experience the impeccable shoreline of Dubai in an exciting way. Enjoy Kayaking around the tranquil coastline and experience the beauty of the calm Arabian sea up, close, and personal with your own Kayak... Read More...

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Stand Up Paddle

Duration: 60 Minutes (Approx)

Adventure in Dubai just does not end. Now enjoy the splendid Arabian sea of Dubai in your own Standup Paddle boat. A great way to escape the routine lifestyle and get refreshed.
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Banana Boat Ride

Duration: 15 Minutes (Approx)

Your water adventure just got more exciting. With the exquisite adventure of the banana boat ride, enjoy the Arabian sea water in a way you never imagined. Book your ride now!
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Yellow Boats Dubai

Duration: 90 / 75 Minutes

The exquisiteness of Dubai’s coastline should be best taken in from water, and one of the apt ways to do it is with Rayna Tours’ Yellow Boat tour. It gives you the perfect chance to circle past. .. Read More...

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Donut Ride Dubai

Duration: 15 Minutes (Approx)

Giving you more reasons to celebrate Dubai vacation, we bring you exclusive Donut rides for splashing adventure in the calm Arabian sea of Dubai. Don’t miss it.
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Fly Fish

Duration: 15 Minutes (Approx)

Want to rule the waters of the Arabian sea, and go for an adventure beyond banana boat ride? Try the Rayna’s Fly Fish thrill and enjoy the best of your trip to Dubai.
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Love Boat Dubai

Duration: 90 mins / 120 mins

Love Boat Tour from Rayna Tours delivers an incredible sightseeing experience in Dubai. Starting from Dubai Marina and cruising past the fabulous skyline and iconic structures... Read More...

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Wonder Bus

Duration: 90 minutes (Approx)

A magical sightseeing experience of Dubai like never before with our special wonder bus tour. See the attractions from both land and sea while sitting inside the bus and enjoy the best of Dubai... Read More...

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Zup Boarding Dubai

Duration: 15 Minutes (Approx)

One of the most thrilling water fun activities in Dubai, we bring you Zup boarding, an adventurous watersport. Stand, kneel or lie down, we promise you of a great time on the Zup board... Read More...

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Dubai Parasailing

Duration: 10 Minutes (Approx)

Enjoy the tranquility of Dubai waters by flying over it. Yes, relish parasailing over Dubai waters in an unforgettable way with Rayna tours. It’s completely safe and incredibly fun activity.

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Jetovator Tour Dubai

Duration: 30 Minutes (Approx)

How about an epic water adventure that makes your entire trip worthwhile? Thrusting you many feet above the water into the air, the Jetovator is not for the faint hearted... Read More...

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Fly Boarding Dubai

Duration: 20 / 30 Minutes (Approx)

Fly boarding is an extreme adventure sport and great fun. Throw some flips while in the air and you can take the adventure to another level. It’s completely safe when done with Rayna... Read More...

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Jet Ski

Duration: Dubai Beach - 30 / 60 mins Mamzar Beach - 60 mins (Approx)

Get on it and ride it like a pro, splashing the waves and creating a riot in the calm sea of Dubai. The Jet Ski experience is a must have while you’re in the city... Read More...

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Scuba Diving Tour

Duration: 3 Hours (Approx)

A trip to Dubai’s enchanting waters is incomplete without enjoying scuba diving. Whether or not you’re an expert, we ensure you enjoy the best of scuba diving experience and have a memorable time.
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Jetpack Dubai

Duration: 30 Minutes (Approx)

A water adventure that you must try, Jetpack with Rayna is completely safe and amazing fun activity to do on the calm waters of Dubai. Flyover Dubai waters and enjoy a thrilling ride... Read More...

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Seabreacher in Dubai

Duration: 15 / 30 / 60 Minutes (Approx)

A journey with Seabreacher not only allows you to speed- read the ocean from above but also takes you underwater like a marine to explore the enormity of the sea like no other... Read More...

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1 Hour Yacht Rental

Duration: 1 Hour (Approx)

To enjoy a memorable cruise along the astounding coastline of Dubai, all it takes is a simple click of mouse or a quick phone call to Rayna Tours. In no time, our friendly team will have your trip reserved for a one-hour escapade... Read More...

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Crab Hunting

Duration: 6 Hours (Approx)

Visit Umm Al Quwain and as the night engulfs the sky, we take you to hunt your dinner. This thrilling crab hunting adventure is sure to make your trip extraordinary. Don’t miss it... Read More...

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Deep Sea Cruising

Duration: 2 / 4 Hours (Approx)

An access to upscale cruise vessels, state of art amenities, refreshments and a hospitality like a royalty; Rayna’s Deep Sea Cruising offers you all this and much more. Try it today!.. Read More...

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Ride out on the dazzling waters of Dubai and experience the city’s glamorous skyline in style! Book our Exclusive Love Boat Charter offering space for up to 10 people... Read More...

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2 Hour Yacht Rental

Duration: 2 Hours (Approx)

Come on-board our super luxury yacht that combines the best of both worlds! A two-hour cruise around the sparkling waters of Dubai Marina in one of our finest vessels.. 
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Ride out on the dazzling waters of Dubai and experience the city’s glamorous skyline in style! Book our Exclusive Love Boat Charter offering space for up to 10 people... Read More...

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3 Hour Yacht Rental

Duration: 3 Hours (Approx)

Circumnavigate the waters of Dubai Marina in Rayna Tour’s meticulously maintained luxurious yacht! Not only does our three-hour yacht cruising enable you to savor the magnificent.
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Deep Sea Fishing

Duration: 4 Hours (Approx)

Deep sea fishing is an extremely interesting activity specially when you’re in the world’s highly favored sailfish destination of Dubai. No matter the weather, we take you on a perfect fishing trip.
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4 Hour Yacht Rental

Duration: 4 Hours (Approx)

Choose our four-hour yacht rental package to cruise down the Dubai Marina and experience the captivating modern attractions of the emirate at its best. .. Read More...

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Dubai Water Activities Review
Average of 4.0/5.0 based on 45 reviews.

“Outstanding service by Mirza Ali at Jumeirah Emirates Towers - organised memorable tours for the four of us”

Mirza Ali kindly organised many tours/activities for us such as jet skiing, atlantis water park, Abu Dhabi tour, desert safari including quad biking, camel ride, sand bashing, a delicious buffet, live entertainment and we especially enjoyed the fire show. These were all amazing, fun and exciting excursions that will be remembered for a life time! We took beautiful pictures which we can look back on of all the places we visited and these trips made our holiday extra special. Mirza was extremely friendly and welcoming, I would definitely recommend booking with him for Rayna day tours and travels. Thank you so much for the best holiday we have all ever had!! We will be back in Dubai again and would love to stay at Jumeirah Emirates Towers - we absolutely loved everything about our trip!!

5.0/5.0

Mr Mirza Ali at the Jumeirah Emirates Tours

I'm so glad we booked with Mirza Ali at the Jumeirah Emirates Towers. We booked a Abu Dhabi, Jet Ski, The desert safari and the Atlantis water park excursions and activities. We had great fun with the tour guide at Rayna Travels. It was the most enjoyable and memorable trip to Dubai. And hopefully would be coming back to Mirza Ali when we next come to the Jumeirah Emirates Towers. Thank you Mirza Ali for all the great help and amazing deals.

5.0/5.0

†Crab‡ †hunting‡ with Raynatours

Crab hunting was nice and scenery also was Beautiful! Everything was excellent, especially the kind arrangement from Mr. Jatin of Rayna tours. Certainly be back yet again!

5.0/5.0

Fishing Trip

Had a great morning fishing with my son - being summer it was a bit quiet but the crew were friendly and tried hard and it paid off with some good fish caught. Will be going out later in the year when the water is a bit cooler.

5.0/5.0

Awesome trip

We had an awesome experience during our marina yacht tour. Me, my bhabi, brother & little kid really enjoyed the trip. That was a fantastic trip. Thank you Ms. Jaya, for making this trip a memorable one. Regards, Sajid hussain

5.0/5.0

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