Dubai: To pay or not pay … if that is the question that is bothering you as you make plans to dine out this New Year’s Eve, the answer is no. And no, we’re not talking about a free meal here, just referring to the extra five per cent Value Added Tax or VAT that we all know will be implemented from January 1.
Speculation
Pre-booked and paid for dinners apart, there is much speculation on whether New Year revellers can escape VAT if they settle their dinner bill before midnight on December 31. But with New Year celebrations invariably continuing into the wee hours, several restaurants told XPRESS diners will be spared the new tax because it will be applicable only from 7am the next morning.
Russel Sharpe, COO of Citymax Hotels in Dubai, said, “We are ready for VAT and have been working with PwC on its implementation at Citymax Hotels. VAT will need to be paid by guests on all bills starting from 7am on January 1, 2018.”
At Millennium Airport Hotel Dubai in Al Garhoud, Binu Varghese, director of sales and marketing, also confirmed, “VAT will only be applicable to bills starting from 7am on January 1, 2018.”
It’s the same case with restaurants in the other emirates too. Haytham Aziz, general manager at Coral Beach Resort Sharjah, for instance, said, “In keeping with the UAE authorities’ directives, all bills posted from 7am on January 1, 2018 will carry five per cent VAT. It will be applicable on all pre-bookings for January 1. Guests need not worry about the New Year’s Eve party as billing will be done on December 31, 2017.”
In Abu Dhabi, Kamal Fakhoury, CEO of Cristal Group, said, “We have got a superb festive programme at Cristal Hotel Abu Dhabi. VAT will only be applied to bills starting from 7am on January 1.”
