VAT on UAE theme parks: Tickets to get costlier

The five per cent VAT on entertainment will result in an increase in the cost of water and theme park tickets in the UAE

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VAT on UAE theme parks: Tickets to get costlier

If you intend to take your family to an amusement park or any other entertainment facility, get ready to shell out more from next year.

Set to be introduced in the UAE from January 2018, the five per cent value-added tax on entertainment will result in an increase in the cost of water and theme park tickets in the UAE if the companies decide to pass on the tax burden to consumers, say tax experts.

“Entertainment constitutes a service. Seeing that there is no exemption or zero rate applying, all types of entertainment will be subject to five per cent VAT,” says Thomas Vanhee, founding partner, Aurifer Middle East Tax.

Girish Chand, director at MCA Management Consultants, is of the view that there is no exempt category in the entertainment sector, hence all activities of the entertainment industry would come under VAT.

“It is expected that the ticket prices would be VAT inclusive considering that it is generally an advertised price. The service providers would have to review their profitability and decide whether they will absorb the VAT cost or pass on to the customers,” Chand noted. More info

By Waheed Abbas/dubai  khaleejtimes.com

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