Trip to Dubai set to get costlier from Jan 1

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A trip to Dubai will cost 5-7 per cent more from the new year as the UAE will levy a VAT of 5 per cent from January 1, 2018 on the majority of goods and services, including hotels, sightseeing tours and car hires, said a Times of India report.
With falling revenue from oil and weakening economy, the country has decided to levy VAT on a majority of goods and services.
“Accordingly, tour costs to the UAE will increase by 6 per cent to 7 per cent due to the 5 per cent tax and compliance cost that businesses will incur. Dubai is the biggest draw for outbound Indians and they will also have to pay more,” Times of India said quoting Anil Kalsi of Delhi-based Ambe World Travels.
“Even if we had confirmed bookings earlier for any service, 5 per cent VAT will be applicable on services rendered in the UAE from January 1, 2018…. We are in the process of sending the amended invoice with 5 per cent VAT for the services confirmed and invoiced. We request you to inform all your guests in advance about it,” says a mail circulated among tour agents in India by a leading travel distributor.
With the UAE, especially Dubai, being a huge draw for Indian travellers, big travel companies said they will try to minimise the impact of the enhanced cost for the end users.

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