Dubai Economy clarifies VAT addition to Fitness First memberships | VAT in UAE

The government department said VAT can only be charged on health
club memberships issued in 2017 if the initial contract mentions the
tax
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully
VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

Dubai Economy clarifies VAT addition to Fitness First membershipsDubai Economy clarifies VAT addition to Fitness First membershipsDubai Economy clarifies VAT addition to Fitness First membershipsDubai Economy clarifies VAT addition to Fitness First membershipsDubai Economy clarifies VAT addition to Fitness First memberships

|

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Dubai Economy clarifies VAT addition to Fitness First memberships
The government department said VAT can only be charged on health club memberships issued in 2017 if the initial contract mentions the tax
 
Health clubs cannot charge VAT on membership contracts issued last year – unless they made clear reference to the tax at the time, a senior government official has said.
Ahmad Al Zaabi, acting director of consumer protection at Dubai Economy, said gyms and other clubs could only charge VAT, or any other tax, on contracts signed last year “if the documented agreement terms specified the same”.
His comments came after Fitness First members became embroiled in a dispute with the health club over VAT being applied to memberships signed and paid for last year.
Many members have complained about demands from the company to pay the tax for the 2018 portion of their membership, with some claiming they were denied entry to the club until the tax was paid.
Mr Al Zaabi said: “For example, the agreement should state that the fee applicable does not include VAT or any of the tax concerned, and also specify that the merchant reserves the right to charge VAT or any other tax that may be implemented in the country at any point during the agreement period.”
He said if this does not happen, the contact will be considered “silent” and the merchant “cannot charge VAT from the consumers, or to gain an accepted settlement with their consumers”.
A Fitness First spokesperson said on Thursday that the company is “very conscious of the fact that we fully comply with and implement the federal mandate on taxation”.
“Fitness First has been proactively engaging with the economic departments of both Dubai and Abu Dhabi, our tax advisers and the Federal Tax Authority, to ensure that we remain fully VAT compliant and the relevant authorities are fully cognisant of our actions and communications on VAT,” the spokesperson said.
 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *