We received several inquiries from members of the Association (Homeowners) regarding the circular issued by the National Bureau of Revenue (NBR) regarding value added tax to the Owners Association dated October 1, 2019, which indicates that the Annual Subscriptions (Service Charge) are not subject to VAT.

Accordingly, the Board of Directors of the Riffa Views Owners Association would like to clarify the following:

• The Annual Subscriptions (Service Charge) of about BD 3.150 per square meter for the year 2020 that has been approved by the General Assembly in its meeting held on December 7, 2019 did not include the VAT amounts that must be paid to service providers.
• To avoid the expected budget deficit, the Board of Directors of the RVOA in its meeting no. (2) for the year 2020 held on December 23, 2019, approved an increase in service charge by 5% for the year 2020, in order to cover the expected increase in service providers’ invoices due to their calculation of VAT.
• The Board of Directors of RVOA confirms that this increase in the service charge is among the power of the Association’s Board of Directors according to both the regulations of the Riffa View By-laws and Resolution no. (1) of 2020 regulating Owners Associations of Joint Properties issued by the Real Estate Regulatory Authority (RERA).
• The Board of Directors and the Association Manager contacted the National Bureau of Revenue (NBR) for clarification and advice in this regard, and it was confirmed that the Association's procedures are correct, and we were directed to issue new revised invoices for the current year 2020 indicating that the increase is an additional fee to cover the VAT.

Based on the foregoing, the Association’s Board of Directors has directed the Association Manger to issue revised invoices for the current year 2020, by November 30, 2020, and they will be sent to all homeowners.

Finally, we would like to assure all members of the Association (Homeowners) that the Board of Directors will strive to continue the efforts made in order to promote our community in Riffa Views in a way that achieves the general interest of all.

With all gratitude and appreciation,

Abdulhameed Ahmed Juma

Secretary

Riffa Views Owners Association