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
39

Things to do in Georgia

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Best Tours and Activities in Georgia

Vacations are precious times. You want only the best for yourself and your loved ones. Our Georgia tours are captivating and leave you in the lap of surreal beauty of nature. From the warm-hearted people that excel in their hospitality to the beautiful countryside, Rayna helps you explore the magnificence of Georgia like a local. For us, a trip to Georgia is not just a vacation bu
...Read more t a journey where we take you to the rugged mountains, crystal white river valleys and the wilderness of the European terrains.

Georgia is a paradisiacal destination. Everything about the place exudes beauty and warmth. For a destination like Georgia, there can be no compromise, neither in its travel nor in your comfort. From picking you up at the airport of Tbilisi to dropping you off with bag loads of precious memories; we make sure your Georgia sightseeing is memorable. A tour encompassing the best things to do in Georgia, your trip to Georgia with Rayna tours is nothing less than magical.

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Travel Guide Georgia
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City Sightseeing Tbilisi

Duration: 90 Minutes (Approx)

Buy convenient Citysightseeing Bus Tour tickets from Rayna Tours! This is one the most flexible ways to discover the main attractions of Georgia’s two prominent cities: Tbilisi and Mtskheta. .. Read More...

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Tbilisi City Tour

Duration: 4 Hours (Approx)

Experience a treasure trove of historic, culturally significant and modern sights on a Tbilisi City Tour with Rayna Tours! Confirm your booking online and enjoy unbelievable deals.  .. Read More...

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Wine Tasting in 8000 Vintages

Duration: 2 Hours (Approx)

Dive into the extraordinary details of rich Georgian wine culture and heritage on your 8000 Vintages wine tasting tour. This will lead you to one of Tbilisi’s most authentic wine shops where you’ll be served pure Georgian wines along with fresh Cheese and Ham.  .. Read More...

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Tbilisi and Mtskheta City Tour

Duration: 6 Hours (Approx)

Experience old and new capital of Georgia in a single trip! Book Rayna Tours’ Tbilisi and Mtskheta City Tour for the best overview of some of the country’s most historic, cultural and remarkably scenic views. .. Read More...

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Quad Biking in Tbilisi

Duration: 30 minutes / 60 minutes / 90 minutes / 120 minutes

Escape Tbilisi’s bustling sights and go off the beaten on a heart-racing quad biking adventure with Rayna Tours. This 30 to 60 minutes ride includes access to state of the art Polaris Machine, alongside all safety gear and expert instructions. .. Read More...

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Tbilisi Airport Drop Off

Duration: 1 Hour (Approx)

End your holidays in Georgia in the most stress-free manner! Simply book our smooth Tbilisi Airport drop off services online and enjoy a smooth transfer between your hotel or accommodation and Shota Rustaveli Tbilisi International Airport. .. Read More...

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Tbilisi Airport Pick Up

Duration: 1 Hour (Approx)

Rayna Tours promises you the most fabulous start to your Tbilisi vacation! Book our efficient Tbilisi Airport Pick Up service, which promptly transfer you from Shota Rustaveli Tbilisi International Airport to your desired spot in the capital city. .. Read More...

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Cooking Experience in Georgia

Duration: 2 Hours (Approx)

Return home with some authentic traditional recipes as a keepsake of your vacation in Georgia. Rayna Tours’ specialized Cooking Class is a hands-on culinary program focused to explain you about the rudiments of cooking classic Georgian cuisines. .. Read More...

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Gino Paradise Tbilisi

Duration: 1 Day (Approx)

With an alluring array of rides, slides, pools and other attractions, the Aqua Park at Gino Paradise Leisure Complex guarantees the ultimate in water adventure and fun while in Tbilisi. .. Read More...

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Mtskheta Tour from Tbilisi

Duration: 4 Hours (Approx)

Experience the quaint charm of one of Georgia’s oldest cities! Take a guided excursion from Tbilisi to discover the artistic and religious places of interest in Mtskheta. .. Read More...

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This makes an unforgettable excursion for those looking for a dining experience accompanied by the finest views of Tbilisi. Enjoy an amazing Funicular train ride up to Funicular Restaurant and see the whole of Tbilisi unbelievably spread out in front of you as you take in traditional Georgian food and wine. .. Read More...

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Traditional Dinner in Georgia

Duration: 2 Hours (Approx)

For an evening of delectable dining and mind-boggling cultural entertainment in Tbilisi, book our exclusive food tour. It guarantees you an authentic taste of Georgian culture and traditions. .. Read More...

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Museum Tour in Tbilisi

Duration: 6 Hours (Approx)

Our special Museum Tour offers an informative trip to some of Georgia’s most significant museums. Visit South Caucasus’s first auto museum, explore 70 plus structures at Giorgi Chitaia Open Air Museum of Ethnography, and walk through more than 60 million years of history on a visit to Museum of Georgia. .. Read More...

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Half Day Vehicle with Driver

Duration: 4 Hours (Approx)

Get to travel around Tbilisi with people who best know the place! Make it possible by booking our special Half Day Vehicle with Driver today itself. .. Read More...

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Kakheti Wine Tour

Duration: 8 Hours (Approx)

For an authentic taste of Georgian history and culture, go on Rayna Tours’ Kakheti Excursion! Besides taking you to attractions such as Bodbe Monastery and Sighnaghi Great Wall, it allows you to savor pure Georgian wines. .. Read More...

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Full Day Gori Uplistsikhe Tour

Duration: 7 Hours (Approx)

With an expert guide, embark on a tantalizing tour that introduces you to some of the Eastern Europe’s most scenic and pre-historic sites. Visit the ancient cave town of Uplistsikhe and explore the Joseph Stalin Museum at Gori. .. Read More...

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Borjomi Vardzia Day Tour

Duration: 11 Hours (Approx)

See some of the majestic sights of Southern Georgia with our Borjomi – Vardzia Tour. You’ll visit the Mineral Spring Park at Borjomi and also make a stop at the ancient cave city of Vardzia... Read More...

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Borjomi and Akhaltsikhe Day Tour

Duration: 11 Hours (Approx)

Know what really make Georgia ticks for an unforgettable vacation! With our Rabati Tour, you’ll see some of South Georgia’s most classic sights, such as Rabati Fortress and the Mineral Park at Borjomi. .. Read More...

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Kazbegi Day Tour from Tbilisi

Duration: 11 Hours (Approx)

Rayna Tours’ well-crafted Kazbegi Tour allows you to experience one of Georgia’s highest mountains in its entire vibrant splendor. Visit the ancient Ananuri Fortress, Jinvali Water Reservoir, and Gudauri, among others. .. Read More...

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Full Day Vehicle with Driver

Duration: 8 Hours (Approx)

Discover the enchanting blend of sights that abound in Tbilisi at your own terms! Simply book our Full Day Vehicle with Driver and enjoy absolute flexibility during your Georgian vacation. .. Read More...

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Martvili Canyon Tour

Duration: 12 Hours (Approx)

Discover the awe-inspiring settings of one of Georgia’s most exquisite natural gems. With this tour, immerse in the beauty of Martvili Canyon on a boat ride, stop at the 7th century Martvili Monastery, and explore the beautiful Salkhino Residence. .. Read More...

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Tour Combination
Tbilisi Airport Pick Up + Tbilisi Airport Drop Off + Dinner in Funicular Restaurant Tbilisi

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Georgia Tours Review
Average of 5.0/5.0 based on 38 reviews.

Great experience at Georgia with Rayna Tours.

We had a great experience in the wine tours arranged across 8000 vintages. The tour has changed our perspective about the wine culture and heritage existing in Georgia. Special thanks to your team who worked behind the scenes and ensured that we got the best package both in terms of inclusions and a competitive price. We loved the overall experience and looking forward to more tour packages from Rayna Tours.

5.0/5.0

It was great exploring Georgian wine

The wine tour was a fabulous experience for all of us. We sincerely appreciate the commendable effort your team took in designing our wine tasting tours across 8000 vintages. It was great exploring the rich history and wine culture existing in Georgia. Looking forward to many more fruitful tours like these from your team.

5.0/5.0

Pleasant and memorable experience.

We had a wonderful experience browsing through the popular landmarks, busy streets, the beautiful riverside, and striking architecture. We are really thankful in designing our itinerary where we got a chance to indulge in spectacular and engaging activities. My entire family loved the overall experience. Looking forward in designing a future tour from Rayna Tours.

5.0/5.0

Wonderful touring experience!

It was a great and pleasant experience witnessing the architectural marvels, vibrant art and culture scenarios, and stunning surroundings in the capital city of Georgia. Thanks to Rayna Tours for making this tour memorable. We would like to especially thank you for the special effort your team took in designing a custom itinerary as per our needs and requirements.

5.0/5.0

Loved our experience of touring magnificent Georgia

We loved our experience of touring magnificent Georgia. Overall, the tour experience was captivating and we loved being in the lap of the picturesque beauty of nature. Thanks to your team, we have come back with several memorable moments. We had loads of fun and entertainment all through our tour. We are extremely thankful to Rayna Tours for being our travel partner and for giving us a magical holiday experience.

5.0/5.0

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