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.
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 FTA directive. So please keep your books in order.
Sale receipts are considered to be tickets which are downlaodable 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.
If you are selling tickets already to events in 2018, you are liable to pay 5% VAT even if the ticket was sold in 2017. The VAT is charged at the time of delivery of the event and not at the time of purchase. So we advise to update your prices to include 5% VAT. Events taking place on NYE remain unaffected.
How will my relationship with Platinumlist change after introduction of VAT ?
There will only be an additional charge of 5% on Platinumlist services such as ticketing fee, staff fees, printing fees and other services carried out by PL (VAT will be added on PL services only, not on the whole revenue). In other words, PL will not charge 5% of your ticketing revenue, you will need to pay that directly to FTA.
So if your ticketing fee from us is currently 5% it will increase to 5.025 % to include VAT on our services.
If we charge 1000 AED for staff it will increase to 1,050 AED to include VAT.
The above is only a brief guideline communicated by Dubai Tourism representatives that are bridging the information gap between the organisers and Federal Tax Authority (FTA). Specific questions should be addressed to FTA directly. This information might not be 100% accurate and should only be used as a guide.
If you have any questions please contact your Ticketing Manager for further clarifications.