5 fees in the UAE revealed which compound your VAT headaches
If you are a UAE resident, you must have started feeling the pinch of the 5% VAT in the country.
Unfortunately, that’s not the only tax that should be of concern to you.
Wait till you here about the other fees that people have started paying with the beginning of New Year 2018.
As per the regulations, the sectors that are subject to VAT include food and beverages, utility bills, private transport services, hotel services, entertainment, electronics, school uniforms, commercial rents, cars and jewellery, among others.
Also, the Federal Tax Authority (FTA) recently explained that in case of reduction in prices during seasonal promotions, VAT will be applicable to the discounted price and not the original price.
While most people worry about VAT, there are fees that could weigh heavily on consumers’ shoulders, and which are blended within certain services.
Here’s 5 fees you may not have known about:
The Dubai authorities issued an additional Innovation Dirham fee to the Knowledge Dirham fee for government services. Both fees will be allocated to developing educational and cultural programs for the Emirate. The Innovation fee will support innovation-led projects and the Dubai Future Foundation (DFF), including forming a committee to engage in exploring innovative opportunities and projects.
Tourism Dirham Fee
The Tourism Dirham Fee is applicable to all hotel establishments operating in Dubai, including hotel apartments, holiday homes, and any such establishments which are located in special development zones and free zones such as DIFC. Fees increased by 10% on the room price, by 10% on service fees, another 10% for municipality fees, between 6% to 10% for city taxes and 6% more for tourism fees.
Good Conduct Certificate fee
The UAE has imposed strict new security checks that will require every working resident to produce a document proving they have not committed a criminal offence. Marriage certificates and education qualifications are also certified in the same way. The Good Conduct Certificate is also asked for by employers. The fee for UAE resident expats is AED210. UAE nationals are not exempt from this and have to pay AED100.
ID service fees
The Federal Authority for Identity and Citizenship imposes charges in exchange for its services, including issuing, renewal and replacing of ID cards. GCC citizens are issued a five-year valid ID for AED100 which are added to the charges of filling the AED70 e-form at typing centres and AED40 in case of submitting the application for the card through the Authority’s online portal website or via its smart app.
Ejari system is a legal contract registration platform by Dubai’s Land Department helping to authenticate rental contracts and agreements between tenants and landlords. The standard fee is AED195, valid for all types of properties.