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.
x
SIGN UP TO BOOK
You're moments away from booking
x
x
Sign up with Facebook or Google
X
Total
Please Wait...
Time Slot not found
Duration :
X
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.
Reviews
.0/5.0
2

.0/5.0

Excellent

No Reviews Available
Useful Info
Terms Conditions
FAQ
Booking Policy
Cancellation Policy
Child Policy
Please Wait...
Time Slot not found
X
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.
Reviews
.0/5.0
2

.0/5.0

Excellent

No Reviews Available
Useful Info
Terms Conditions
FAQ
Booking Policy
Cancellation Policy
Child Policy
SEARCH NOW

Alert

×

No Yes
Tours and Sightseeing

Penang City Tours

  • Sort results by:

  • Most Popular

Hand Picked Penang Sightseeing Tours and Activities

Not many people know that Penang can be your getaway for the most happening, relaxing and exciting excursions. All you need is a tour by Rayna Travels. Our specially designed tours of Penang ensure you never miss anything beautiful and worth visiting in the city. Whether it is the best of attractions that you visit during the day or the exploration of culture and cu
...Read more isine through our night tours; Rayna makes sure you love every minute of your time with us. Less
Travel Guide Penang
0% Discount*

Penang Hop On Hop Off Bus Tour

Duration: 3 Hours (Approx)

Check off Penang’s best sights and attractions on this comprehensive tour! Book your Penang Hop-On Hop-Off tickets with Rayna Tours and set out to discover this marvelous destination at your convenient pace. .. Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 49.30
AED 49.30  Save AED
SELECT Book Now
0% Discount*

Georgetown Heritage Tour with Guide

Duration: 4 Hours (Approx)

Take one of the most complete Malaysian heritage tours with Rayna Tours! Visit the history-drenched Pinang Peranakan Mansion, see the region’s only Teochew temple, and explore Little India as well as the Street of Harmony, among others. .. Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 105.64
AED 105.64  Save AED
SELECT Book Now
0% Discount*

Penang Round Island Tour

Duration: 4 Hours (Approx)

Get carried away by the scenic beauty and extraordinary sights of Penang with our exclusive tour! Visit Penang Batik Factory, drive through traditional village, and spend some time within the peaceful ambience of Snake Temple. .. Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 106.76
AED 106.76  Save AED
SELECT Book Now
0% Discount*

Penang City Tour

Duration: 4 Hours (Approx)

 For an incredible overview of one of Malaysia’s most historic and scenic destinations, book our Penang City Tour encompassing all of the region’s top sights. .. Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 107.22
AED 107.22  Save AED
SELECT Book Now
0% Discount*
Discover one of Malaysia’s most treasured Buddhist shrines with our special temple tour! Visit the highly venerated Kek Lok Si Temple and soak in the mind-boggling landscape that envelops Penang Hill. .. Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 124.55
AED 124.55  Save AED
SELECT Book Now
0% Discount*

Penang Night Tour

Duration: 3 Hours (Approx)

Rayna Tours’ Penang Night Tour is the ultimate way to take in the region’s beguiling attractions at nightfall. This assures you of an evening packed with lots of inspiring and exciting moments... Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 144.94
AED 144.94  Save AED
SELECT Book Now
0% Discount*

Penang Grand Tour

Duration: 6 Hours (Approx)

Take a journey through the treasures of Penang on a sightseeing tour with Rayna Tours. This includes a trip to the region’s beautiful shrines and incredible cultural as well as historic attractions... Read More...

  • Instant Confirmation
  • Non Refundable
From
AED 348.90
AED 348.90  Save AED
SELECT Book Now

Markup %

Duration: Time Slot:  working days
Processing Type:
 

Your Shopping Cart Is
Empty!

Total  

SEARCH NOW

Alert

×

No Yes
Alert Me to Unlock Deals
Don't miss out our Exciting Travel Deal! Keep track of Rayna’s smartest and best discount offers.
Talk to Us
Leave us your Query by entering the details below & we’ll be in touch with you shortly.
Penang City Tours Review
Average of 5.0/5.0 based on 7 reviews.

Highly enjoyable tour and would recommend to my friends!

After seeing Penang in the morning, I wanted to see it in the night. So, I booked the tour. I must say, the city feels quite different at night. More bustling than usual. The nights markets are great to shop at. I got a few bargains and the rickshaw ride was fun and exciting. The tour ended at Penang Bridge which is quite beautiful. This is a good tour if you want to see a whole new side of Penang. I gladly recommend this to all. I am nocturnal person who promptly booked Penang Night Tour. I personally believe night is the best to explore a place, and how true it was for Penang. The city is bustling with energy. In the tour, I got a trishaw ride through the city. I also did shopping and ate some delicious food from the street. The Penang Bridge was amazing. And just walking on it, and standing by the ledge was a peaceful yet exciting experience. This is a good tour and highly enjoyable.    

5.0/5.0

I really had the most peaceful time at Penang!

A friend of mine had strongly recommended that I take the Penang Hill & Kek Lok Si Temple Tour, and I did. This was quite an enjoyable tour. Our guide took us to the George Town Station from where we took the Penang Hill Railway. The sights we saw were just amazing. But more beautiful than the views was the Temple. It is massive! And the seven tier pagoda is a marvel. The guide was really good and gave useful information. Rayna did a great job organizing the whole thing.      Being a follower of Buddhism, I really wanted to see the Kek Lok Si Temple. I quickly booked the this tour was off. The train journey was a lot of fun. You don’t find such journeys elsewhere. Finally, we reached the temple and what a sight it was. I knew it was the biggest temple in Southeast Asia but didn't expect it to be so big. The pond had so many turtles and the pagoda was just magnificent. The whole atmosphere was tranquil and I had the most peaceful time.

5.0/5.0

Excellent job Rayna Tours...!

I absolutely love Penang, and more so after taking Rayna Tours’ Penang City Tour. I have been to this Malaysian Gem before, but this time, I came through Rayna Tours. The itinerary of the trip was awesome. I got see Georgetown, Little India, Chinatown, Reclining Buddha Temple, Fort Cornwallis, and many others attractions. We were also given a polite and knowledgeable English-speaking guide. This was a good tour and I recommend it to all. My family wanted a vacation where we could experience Malaysian culture, so we got the Penang City Tour. And honestly, this was a good choice as we got so see Penang, a completely different Malaysian destination. The heritage town of Georgetown was an eye-opener, and the Reclining Buddha Temple was marvelous. But the best part was the Cocoa Boutique. We ate so many chocolates. The Penang City Tour was a good tour and Rayna did an excellent job organizing the whole thing.  

5.0/5.0

I just loved the tour..will recommend to my friends!

Penang is beautiful, and I wanted to see a few prominent places like Batik Factory and Snake Temple. After checking out Rayna Tours itinerary, I booked the Penang Round Island tour. Their tour vehicle was on time and air-conditioned. I absolutely loved the Batik Factory. Their designs were to die for. I also loved the fruit ,market. I got to try fruits i had never seen in my life, and the Snake Temple was something to remember. All in all, it was a great and enjoyable trip. Booked the Penang Round Island tour and had thoroughly enjoyed the The Batik factory is amazing, and Mayal Village and Batik Pulau Village look like they are stuck in time. Very rustic. But the scariest part of the tour was the Snake Temple. There are viper snakes all over the temple but what’s surprising is that they never attack or bite anyone. This place is not for people who don’t like snakes. This is a good tour and showcases an unknown side of Penang.

5.0/5.0

I recommend this tour to every one visiting Malaysia..Thank you Rayna Tours!

I feel the best way to explore a place is know it’s history, and I did exactly that with the Georgetown Heritage Town. I had heard a lot about the place and booked the tour well before I came to Penang. The tour is awesome. We got a English speaking guide who took us around. There was a lot information given and ample time to explore. We were also picked up and dropped off on time. It was quite an enjoyable tour.   My family wanted to do something different, so we booked the Georgetown Heritage Tour, and this was a good decision. The opulent homes that were converted to museum were just amazing. It felt like we were back in time. What’s awesome about this tour is that you also get to visit other places like Little India, Traditional Clan House and more. And what an end to the tour with chocolates at the Cocoa Boutique Tour. I recommend this tour to everyone who want to do something different.

5.0/5.0

SEARCH NOW

Notification

×

SEARCH NOW

×