UAE to introduce VAT on entertainment

The cost of theme park and water park tickets in the UAE is set to rise as a new VAT on entertainment is announced. 

The 5% VAT is set to be introduced in the UAE from January 2018. Companies may decide to pass the new cost onto consumers – increasing the cost of tickets.

“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,” Thomas Vanhee, founding partner, Aurifer Middle East Tax, told the Khaleej Times.

Girish Chand, director at MCA Management Consultants, says 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 explained.

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