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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Description
Important Information
Inclusions
Timings
Duration Departure Point Reporting Point Tour Language Meals
Option :
Description :
Departure TIme :
Note: If Tour Booked without Transfers, Please confirm the Tour Location & Timings with our Customer Support team if required.
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Dubai Premium Trio Package

464Reviews
Activities Included
Dubai City Tour + Red Dune Safari + Dhow Cruise Dinner - Marina
From
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From
541.01
721.35
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TOUR RATES
DESCRIPTION
Dubai Premium Trio Package is designed with all the must to do Premium Tour activities in the Country that takes you through the magnificent view of the City, drives you over the golden sands of the deserts, takes you on a floating Restaurant which passes by a artificial Canal located in between the heart of the City. One of the best Combos that cannot be missed out by a person visiting the land.

KEY DETAILS
Availability: Daily
Duration:3 Hours (Approx)
Starting Time: 19:00:00
Pickup & Drop Back
Instant Confirmation
Free Cancellation 6 hours Prior
Printed Voucher Accepted
English
INCLUSIONS
  • Pick up from your hotel  (If transfer option selected)
  • 90 minutes Cruising in Dubai Marina, Yatch Club, Marina Towers
  • International Buffet Dinner with Veg & Non Veg dishes
  • Access to fully air conditioned lower deck and open air upper deck
  • Welcome drinks, Water, Tea & Coffee
  • Tanura Dance by professional artist
  • Soft background Music
  • Separate Toilet facilities for both Men & Women
  • Drop off at your Hotel (If transfer option selected)
TIMING
Duration Departure Point Reporting Point Tour Language Meals
3 Hours (Approx) Hotel (Centrally located in City Center Area Dubai / Sharjah Sahara Centre Dubai Side) Hotel Lobby English Dinner
Option : 1
Dhow Cruise Dinner - Marina
Description :
Book a Dhow Cruise at Marina and enjoy exclusive Tanura show with international veg and non- veg buffet dinner in the open air upper deck or an access for the Air Conditioned seating in the lower deck for 90 mints.
Pick up Time :
Between 7:15 pm to 7:45 pm (SZR / Al Barsha) Between 6:45 pm to 7:15 pm (Deira Burdubai)
Note: If Tour Booked without Transfers, Please confirm the Tour Location & Timings with our Customer Support team if required.
IMPORTANT INFORMATION
BOOKING POLICY
Cancellation Policy
All Cancellations made 6 hours prior to the Tour departure time NO charges will be applicable
If Cancellation made within 6 hours to your Tour departure time 100% charges will be applicable
If eligible for Refund your Amount will be returned back to your Account within 7 working days
Ticket Policy - Once your tickets are issued system will not allow you to cancel any order
Child Policy
Children under 3 years will be considered as infant and entry will be free of cost.
Children between age 3 to 10 will be considered as child and charged child rate.
Children above age 10 will be considered as an adult and charged adult rate.
KEY DETAILS
Availability: Daily
Duration:4 Hours (Approx)
Starting Time: 09:00:00
Pickup & Drop Back
Instant Confirmation
Free Cancellation 24 hours Prior
Printed Voucher Accepted
English / Arabic
INCLUSIONS
  • Pick up from your Hotel
  • Dubai Museum – located within an 18th century – it has exhibits that depicts the history and culture of the region.
  • Jumeirah Mosque – a rare example of a mix of Islamic and modern architecture
  • Jumeirah Beach
  • Burj Al Arab – the sail-shaped hotel that holds the distinction of being the world’s only seven-star hotel
  • The Palm Island – the most scenic artificial man-made island on the earth, it is an all-inclusive project with incredible beaches, superb facilities for water sport activities and world-class accommodation as well as dining choices
  • Atlantis Hotel – this is perhaps the centerpiece of Palm Island
  • Mall of Emirates – with Ski Dubai and a host of shops, restaurants and café – it provides finest in shopping, dining and entertainment activities
  • Dubai Mall – in addition to incredible shopping and dining choices, it spellbound visitors with its aquarium that is biggest of its kind in the world
  • Burj Khalifa – this magnificent steel structure, towering up to a height of 829.8 meters, is the world’s tallest building
  • Drop off at your Hotel
TIMING
Duration Departure Point Reporting Point Tour Language Meals
4 Hours (Approx) Hotel (Centrally located in Dubai / Sharjah Sahara Center Dubai Side) Hotel Lobby English / Arabic
Option : 1
Dubai City Tour Morning(Diera, Bur dubai)
Description :
We welcome you to come on the Dubai City tour and enjoy the best of world record attractions in ultimate comfort in the Morning time.
Pick up Time :
Between 9:00 am to 9:30 am (Deira / Bur Dubai)
Option : 2
Dubai City Tour Evening(Diera, Burdubai)
Description :
We welcome you to come on the Dubai City tour and enjoy the best of world record attractions in ultimate comfort at the Evening time.
Pick up Time :
Between 2:30 pm to 3:30 pm (SZR / Al Barsha) Between 3:00 pm to 3:30 pm (Deira Burdubai)
Option : 3
Dubai City Tour Morning(SZR, Al Barsha )
Description :
We welcome you to come on the Dubai City tour and enjoy the best of world record attractions in ultimate comfort in the Morning time.
Pick up Time :
Between 8:30 am to 9:00 am (SZR / Al Barsha)
Option : 4
Dubai City Tour Evening(SZR, Al Barsha )
Description :
We welcome you to come on the Dubai City tour and enjoy the best of world record attractions in ultimate comfort at the Evening time.
Pick up Time :
Between 2:30 pm to 3:30 pm (SZR / Al Barsha) Between 3:00 pm to 3:30 pm (Deira Burdubai)
Note: If Tour Booked without Transfers, Please confirm the Tour Location & Timings with our Customer Support team if required.
IMPORTANT INFORMATION
BOOKING POLICY
Cancellation Policy

All Cancellations made 24 hours prior to the Tour departure time NO charges will be applicable. 
If Cancellation made within 24 hours to your Tour departure time 100% charges will be applicable.
If eligible for Refund your Amount will be returned back to your Account within 7 working days
Ticket Policy - Once your tickets are issued system will not allow you to cancel any order

Child Policy
Children under 3 years will be considered as infant and entry will be free of cost.
Children between age 3 to 10 will be considered as child and charged child rate.
Children above age 10 will be considered as an adult and charged adult rate.
KEY DETAILS
Availability: Daily
Duration:6 Hours (Approx)
Starting Time: 14:30:00
Pickup & Drop Back
Instant Confirmation
Free Cancellation 12 hours Prior
Printed Voucher Accepted
English / Arabic
INCLUSIONS
  • Pick up from your Hotel
  • Exploration of dunes in a 4x4 vehicle
  • Dune bashing in Al Lahbab desert
  • Sunset views with photographic opportunity 
  • Camel ride 
  • Fire Show
  • Henna tattooing 
  • Shisha smoking facility
  • Sand boarding 
  • Falcon Photographic opportunity 
  • Quad biking (upon request)
  • Traditional BBQ dinner with vegetarian and non-vegetarian cuisines 
  • Entertainment shows: Belly dance & Tanura 
  • Unlimited refreshments 
  • Alcohol (upon request) 
  • Separate washroom facilities for men & women
  • Drop off at your Hotel
TIMING
Duration Departure Point Reporting Point Tour Language Meals
6 Hours (Approx) Hotel (Centrally located in City Center Area Dubai / Sharjah Sahara Centre Dubai Side) Hotel Lobby English / Arabic BBQ buffet dinner
Option : 1
Red Dune Safari
Description :
Enjoy off road expedition on the enchanting terrains and rest at the Bedouin style campsite sipping on the hot Arabian coffee. Enjoy dance, music and host of other activities.
Pick up Time :
Between 2:30 pm to 3:00 pm
Option : 2
Red Dune Safari with Food on Table
Description :
After an adventurous red dunes bashing, enjoy the Bedouin style campsite with music, dance and a sumptuous array of cuisines served right on table, just for you.
Pick up Time :
Between 2:30 pm to 3:00 pm
Option : 3
Red Dune Safari with Quad Bike 20 min.
Description :
We take you on adventurous red dune bashing along with an exclusive campsite experience of dance, music, fun activities,Quad Bike and dinner at the VIP Majlis.
Pick up Time :
Between 2:30 pm to 3:00 pm
Option : 4
Red Dune Safari with VIP Majilis
Description :
We take you on adventurous red dune bashing along with an exclusive campsite experience of dance, music, fun activities and dinner at the VIP Majlis.
Pick up Time :
Between 2:30 pm to 3:00 pm
Option : 5
Red Dune Safari with Dune Buggy 20 min.
Description :
We take you on adventurous red dune bashing along with an exclusive campsite experience of dance, music, fun activities and dinner at the VIP Majlis.
Pick up Time :
Between 2:30 pm to 3:00 pm
Note: If Tour Booked without Transfers, Please confirm the Tour Location & Timings with our Customer Support team if required.
IMPORTANT INFORMATION
BOOKING POLICY
Cancellation Policy
In case Tours or Tickets cancelled after Booking 100 % charges will be applicable
Ticket Policy - Once your tickets are issued system will not allow you to cancel any order
Child Policy
Children under 3 years will be considered as infant and entry will be free of cost.
Children between age 3 to 10 will be considered as child and charged child rate.
Children above age 10 will be considered as an adult and charged adult rate.
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