The UAE Government has recently issued Federal Decree Law No. (8) of 2017 on Value Added Tax (VAT) (“VAT Law”) confirming that VAT will be implemented in the UAE effective 1 January 2018 at a standard rate of 5%. Wherever applicable, VAT will be collected on taxable supplies of goods and services in the UAE.
In situation where your reservations were booked earlier without applicable VAT included in the price, the service provider may charge VAT directly to the customer or our accounts team will get in touch with you to claim 5% additional amount if the same needs to be paid by us to our service provider.
While we are still in process of implementing online changes to our system (which are under development), your cooperation in the same regards will be highly appreciated. We will get back to you with more details soon.
For more information on the VAT Law you may also refer to the following useful links:
Federal Tax Authority: www.tax.gov.ae
Ministry of Finance: www.mof.gov.ae/En