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.

Terms & Conditions

All bookings made with Raynab2b are subject to the following terms and conditions. Since you’ll be bound by these conditions once the agreement comes into force, we request you to carefully read and understand them. Raynab2b reserves the complete right to alter, add, or delete any of these terms and conditions without any prior notice, and such changes naturally apply to you upon booking a tour or package with us. Failure in adhering to our T&C might result in termination of services and deactivation of your account with www.raynab2b.com.


1. Pricing

A price mentioned in our website or brochure vary as per the services, In Case of Hotel they will be Per Room Per Night which does not include TOURISM DIRHAM (It is to be paid by the guest directly at the hotel), In Case of tours it is based on per person with SIC (Seat in Coach) basis and will be shown with the total number of the guest if searched via private basis. It is non-inclusive of any kind of payment done from the part of customers, in the form of visa fee, room charges and tips to drivers or guides. In addition, changes in pricing may occur in the event of any additional expense incurred by your transport or accommodation service provider. All the third party attractions and products must not be sold individually at rates lower than their gate prices. The discounts can be given only if in combination with other products and under no circumstances its featured rates must be less than the attraction's gate price.


2. Mode of Payment

Upon choosing your preferred tour service or holiday package, you can make your payment via a valid credit card/Debit card, such as American Express, Discover, MasterCard, Diners, or Visa. Depending on the package, you may be entailed to make full payment.


3. Payment Confirmation

As soon as you make the payment, we’ll send you a confirmation email, along with a unique booking reference number and voucher. Since it is deemed as a proof of payment, we advise you to take a print out of the voucher.


4. Disclaimer of Liability

  • We take all possible effort to make sure that information contained on the website of Raynab2b is precise and genuine. If you find any information on this website to be imprecise, please notify us the same by forwarding us an email to online@raynab2b.com or by dialing us at +91 2022838888, and we’ll try to rectify it as early and practicable as possible .
  • While we endeavor to keep the information up-to-date, there may be incorrect or outdated content. Moreover, website content is subject to change without any prior notice. Raynab2b does not give assurance, warranty, or representation of any sort, implicit or explicit, on account of the authenticity, accurateness, appropriateness, comprehensiveness, reliability, and availability of information contained on the website.
  • In order to keep the website up and running in the most efficient and smooth manner as well as ensure that our IT infrastructure is free of any error or virus, we implement state of the art technological solutions. That said, Raynab2b will take no responsibility for and should not be held liable in the event the website is temporarily inaccessible or for any loss or damage that occur as an outcome of the access to, or incapability to use the website of Raynab2b due to virus attacks whatsoever.
  • Raynab2b website may contain links that lead to third party websites, which consequently are not under the control of Raynab2b. Apparently, we do not have any authority on and take no accountability with regards to information available on such websites.
  • Under no circumstance, Raynab2b or any of its employees, partners, agents, or sub-contractors should be held liable for any consequential or unintended loss, claim or decision made as part of the use of its website, content or materials, which include, but not restricted to, business loss, data corruption, loss of goodwill or reputation, and loss of personal information.

5. No Show Policy

If you do not avail of a paid tour service partly or fully, Raynab2b will not make any refund in such circumstance. This is applicable to all unutilized Rayna B2B tour services including city tour, limo service, desert safari etc.


6. Cancellation Process

In order to cancel a booking, Firstly we would request you to cancel the booking through on Raynab2b.com also send us a notification in writing. An email would be enough. Once we receive your cancellation request, we’ll acknowledge it through one of these modes: email, telephone, or fax, while citing the cancellation fee you may be required to pay. Please be informed that Raynab2b is not liable for any cancellation request received from guests.


7. Guest Refund Policy

The Guest Refund Policy is meant to support guests in the event they suffer any travel issue. It is applicable to all guests who make a tour reservation through Raynab2b website. However, this will be in accordance with the terms stated on your tour booking voucher. While we’ll do everything possible to refund the amount if you need to cancel a tour or package booked through the Rayna B2B, it is vital to note that we’re subject to different set of policies when it comes to private contract. It is, therefore, not viable for us to guarantee the same refund procedure or policies for all tours and services listed on Raynab2b website. Accordingly, the following policies apply for:

  • Tickets: All tickets are non-refundable as well as non-transferrable .
  • Visa: Fee charged for all types of visas is non-refundable, as the immigration authority of the UAE normally does not refund the amount in the case of rejected visa applications.
  • Unused Tours: No refund can be made for unused tours, partly used or unutilized part of holiday package. Precisely, such unused services are not exchangeable or refundable.
  • No Show: Rayna B2B should not be held liable, if a guest fails to notify our team regarding the cancellation of tour or do not reach on time at the place of commencement of tour. Such cases will be treated as No Show and are non-refundable.
  • Third party services: Since they are subject to different refund and cancellation policies, some of the services offered by third parties may be non-refundable. We normally provide the details of the same at the time of booking.
  • In order to get refund of a tour service or package purchased directly from the Rayna B2B, you’ll need prior authorization in writing. All decisions taken by RaynaB2B with regards to refund policy will be final and bind on both Rayna B2B and guests.

8. Cancellation Policy

Your ability to amend or cancel a tour booking made through Raynab2b is determined by the respective tour’s terms and conditions or third party suppliers’ cancellation policies. Accordingly, depending on the tour type, there are instances in which you may not be able to make an amendment / cancellation of your tour booking or will have to abide by certain conditions for the same.


9. Itinerary Amendments

Depending on climatic conditions, flight schedules, and such other various aspects, certain inclusions in your package, such as transfers, are subject to changes. In such situation, we’ll try to offer suitable alternatives of original tour value, which – however – is subject to its availability. As mentioned earlier, Raynab2b holds the complete right to make minor changes in the tour packages, and the guest is not entitled for any refund in such circumstances. Furthermore, no refund is made on cancellation of a tour service due to the reasons beyond our control, such as natural calamities. For any special request mention the same information in special request column given on the booking detail page also note that the request given by the guest will be subject to availability.


10. Accommodation & Check-in & Check-out Policy

At Raynab2b, we endeavor to help you pick an accommodation choice that best suit your business or holiday needs. Regarding check-in / check-out policy, it varies from one hotel to another, and hence we advise you to refer to your hotel website. Apparently, Raynab2b is not liable for any late or early check-in or check-out, To avail that we would request you either to send us an email with the arrival timing of the guest immediately after the booking is done, or else mention the same information in special request column given on the booking detail page also note that the request given by the guest will be subject to availability.


11. Travel Documents

Be sure, especially if you’re coming from another country, to carry all documents that qualify your entry to the destination. Reimbursement will not be made by Raynab2b, if your entry is restricted due to the lack of proper documents. Further, prior to your visit, it is highly recommended to check with your country’s consulate to get an idea on entry prerequisites.


12. Website Usage

Each of Raynab2b content, covering images, product details and description, pricing information, and logo, is proprietary to Raynab2b. You may view or print any or all part of the website, though cannot be utilized for any commercial, non-personal or illegal causes.


Rayna B2B is firmly dedicated to protect the privacy and confidentiality of our esteemed guests’ personal information. We, therefore, implement state-of-the-art electronic and technical safety system in order to safeguard guests’ privacy rights when they use our website or interact with Rayna B2B staff. The inclusions of privacy policy outlined herein will give you a clear understanding on how Rayna B2B will collect, utilize, and most of all, protect your information that you provide us through any of these sources, such as email, company website, or agent.


1. Collection of Personal Information

Rayna B2B entails to submit your personal details, such as name, contact number, location address, email id, and payment info, especially when you get in touch with us to enquire about our services or at the time booking a tour package. By submitting such details, you allow us to utilize your personal data for further relevant purpose.


2. Use of Information

The client’s personal information collected via the website, email or other sources is primarily used to confirm booking, authenticate credit card information, and process the payment. Apart from utilizing it for activities intended to improve the website’s performance, this information is also submitted to airline or accommodation service provider, depending on your preferred service package.


3. Privacy of Your Data

At Rayna B2B, we assure you that we’ll not disclose or sell any information – partly or fully - provided by you at the time of booking. Even if we have to submit your details to third parties including hotels and flight carriers, we ensure that they strictly confirm to our privacy policy and terms and conditions.


4. Legal Disclosure of Information

In order to obey a court order or safeguard the Rayna B2B rights, we may disclose your private details.


5. Collection of Non-Personal Information

This indicates data that Rayna B2B compiles through suppliers, third party service providers, and web logs, and it is mainly put in use to analyze the performance of our website.


6. Opt-Out

Should you no more wish to obtain our newsletters or emails indicating latest tour promotions, we request you to notify the same to our customer support team. Give us a call on +91 2022838888 or send an email to online@raynab2b.com with subject ‘Unsubscribe.’


7. Contests and Surveys

From time to time, Rayna B2B conducts sweepstake, lucky draw, polls and surveys, of which some are planned in conjunction with third party sponsor. In such instances, we’ll inform our clients about the involvement of a third party as well as their scope of utilizing your personally identifiable information. Further, it is up to you whether or not to participate in such contest, survey or poll.


8. Secured Financial Transaction

To avoid any kinds of discrepancies in terms of the use of your personal information, we deploy advanced server to secure your orders and process information. The use of sophisticated technical system will provide a further layer of protection to your sensitive data, such as payment details.


Payment Options

Choose from one of our quick and convenient payment options, and our team will ensure that the whole procedure is undertaken in the safest manner possible.

  • Credit card
  • Bank guarantee
  • Internet Banking
  • Cash deposit
  • Bank transfer

We also offer following payment choices for our clients.

  • Floating Cash Deposit: This requires clients to maintain a certain amount of money as floating deposit, as agreed by both parties. As soon as the client makes a reservation, this is deducted from the deposit amount. But reservations will not be allowed or even cancelled, if the deposit fund is low or insufficient.
  • Credit Line: Clients can secure a confirmed booking of tours and services with an established credit line. In order to be assigned with a credit line, it’s vital for the clients to abide by the provisions and standards set by Raynab2b, besides maintaining a floating deposit or a bank guarantee from a reputable financial institution.

Raynab2b provides a comprehensive suite of travel solutions at a very competitive rate and without any hidden fee / string attached. We also assure our members of excellent technical support and immediate response to their queries with the best of our knowledge.

Cash Agent Credit Agent
No credit limit is assigned Will be assigned a credit limit
No floating deposit is required A floating deposit is required
Not able to issue voucher until payment is made Voucher can be issued soon after the confirmation of booking
Reservation can be made with a live credit card & Debit Card Reservation can be made with a credit limit assigned
Need to make payment though Credit and Debit card prior to the cancellation deadline Credit amounts will be adjusted based against Credit limits & Raynab2b’s payment / invoice rules
Can directly voucher the booking once the payment done by credit and debit card Can voucher the booking instantly through Credit Limits
Can make bookings within Cancellation period Can make bookings within Cancellation period
Cannot Confirm the booking can only Voucher Can Confirm the Booking without vouchering

To become Credit Limit Partner download the Credit Application Form

BANK DETAILS : UAE

BANK NAME RAK BANK
ACCOUNTS NAME RAYNA TOURISM LLC
AC NO. 0037-331017-061
IBAN AE600400000037331017061
SWIFT CODE NRAK AEAK
ACCOUNT TYPE CURRENT ACCOUNT
BRANCH NAME AL QUSAIS
CITY NAME DUBAI UAE
BANK NAME NATIONAL BANK OF ABU DHABI
ACCOUNT NAME RAYNA TOURISM LLC.
ACCOUNT NO 6202306483
IBAN NUMBER AE20350000006202306483
SWIFT CODE NBADAEAA
ACCOUNT TYPE CURRENT ACCOUNT
BRANCH NAME HOR AL ANZ
CITY NAME DUBAI UAE
BANK NAME                    EMIRATES NBD
ACCOUNT NAME RAYNA TOURISM LLC.
ACCOUNT NO 101 47347267 01
IBAN NUMBER AE57 0260 0010 1473 4726 701
SWIFT CODE EBILAEAD
ACCOUNT TYPE CURRENT ACCOUNT
BRANCH NAME MAMZER BRANCH
CITY NAME DUBAI UAE
MAILING ADDRESS DUBAIEMIRATES NBD, P.O. BOX 777
BANK NAME EMIRATES ISLAMIC BANK
ACCOUNT NAME RAYNA TOURISM LLC
ACCOUNT NUMBER 0015227997001
ACCOUNTIBAN AE170340000015227997001
ACCOUNT TYPE CURRENT ACCOUNT
BRANCH Al Riqqa Branch (DUBAI)
CITY NAME DUBAI UAE

BANK DETAILS : INDIA

BANK NAME ICICI Bank Ltd.
ACCOUNT NAME RAYNA TOURISM LLC
ACCOUNT NUMBER 098505500241
IFSC Code ICIC0000985
ACCOUNT TYPE CURRENT ACCOUNT
BRANCH BANER, PUNE
CITY NAME , ADDRESS PUNE , ICICI BANK LTD. Ground Floor, Shop No. 2, Atria, Sai Prestige, Baner Road, Pune – 4110045.
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