Services in UAE
The different types of tax accounting services in Dubai are as follows
1.Excise Tax
Excise tax is an indirect tax applied to goods harmful to health or the environment.
- Taxable Goods Include:
a. Carbonated Drinks: Except for unflavored aerated water, all aerated beverages fall under this category.
b. Energy Drinks: Beverages marketed as energy drinks containing stimulant substances.
c. Tobacco Products: All tobacco and related products are subject to excise tax.
d. Electronic Smoking Devices: Devices and liquids used in electronic smoking tools are taxable.<
e. Sweetened Drinks: Sugary beverages are also included in the excise tax category.
2. Value Added Tax
VAT, a consumption tax, is applied to goods and services at each point of sale. Here’s a breakdown of the categories:
a. Exempt Supplies:
- Some specified financial services as outlined in VAT legislation.
- Residential properties
- Bare land
- Local passenger transport services
b. Taxable Supplies:
- Commercial properties
- Retail purchases of taxable products
- Car sales and rentals
- Hotels and restaurants
- Repairs and maintenance services
c. Zero-Rated Supplies:
- Education services
- Healthcare services /li>
- Medicine and medical equipment
- Investment in Gold, Silver, and Platinum
- Exports and International Transports
- Crude Oil and Natural Gases
- First Sale of Residential Properties
3. Tourist Facility Taxes in the UAE
Regarding tourist facilities in the UAE, including restaurants, hotels, hotel apartments, and resorts, various taxes might apply to room rates and services. Here’s a detailed overview:
-
- 10% Tax on Room Rate
- 10% Service Charge
- 10% Municipality Fees
- 6 to 10% City Tax
Additionally, in Dubai, hotels implement the ‘Tourism Dirham Fee’ per room per night of occupancy, ranging from AED 7 to 20, depending on the hotel’s category/grade, applicable for up to 30 consecutive nights.
In Abu Dhabi, hotels introduced a new fee in May 2016, 4% of the hotel stay bill and AED 15 charges per night per room. Meanwhile, hotels in Ras Al Khaimah impose an AED 15 tourism fee per room per night. The tourist facility tax rates vary from state to state.
