Dear Event Organiser,
Following the uncertainty about the taxation of events in UAE, here are the tax guidelines that were communicated at the Dubai Tourism meeting on 19th December 2017.
Summary
The price of any ticket for sale for an event should be VAT inclusive and must be clearly indicated on the ticket.
The 10% DTCM Tax shall be calculated based on the price of the ticket exclusive of VAT
While Platinumlist remits the 10% DTCM Tax directly to DTCM, it is the Organizer's responsibility to remit the 5% VAT to FTA within the due date mandated by the FTA.
We made a sample computation for better understanding :
Organizer Sold 100 Tickets , each Price AED 100 ( VAT Inclusive)
Sales ( VAT Inclusive) = AED 10,000.00 ( 100 tickets x AED 100)
Sales ( VAT Exclusive) = AED 9,523.81 (AED10,000.00/1.05)
VAT = AED 476.19 ( AED 9,523.81 x 5% )
DTCM Tax = AED 952.38 ( AED 9,523.81 x 10% )
It is the responsibility of the organiser to obtain the FTA registration and provide financial figures and payments on time to FTA.
You will have to keep auditable financial records for 5 years as per the FTA directive. So please keep your books in order.
Sale receipts are considered to be tickets that are downloadable from Platinumlist organiser panel for up to 2 years.
If you do not have a Dubai Inland license with event activity or audited accounts facilities Platinumlist can help.