Community Service Fee

It consists of day-to-day operating and administrative expenses used to maintain your community. Operational expenses include the maintenance, utility costs and management of everything from common area infrastructure and landscaping, to waste collection and signage placement.

It was established to pay for costs incurred in the repair and replacement of significant capital items, such as elevator or chiller replacements, flooring, painting and cladding of buildings.

This is a one-off charge for items not in the design or those not covered under the General Fund. For example, if you require an additional facility such as a play area or a swimming pool, the cost for this will be covered by the Special Levy.

This charge is paid through the CSF and covers items such as plants and the maintenance of the Master Community infrastructure including roads, underground services, storm drains, sewage lines and pavements.

Value Added Tax (VAT) has an impact on your Community Service Fees (CSF) as it includes several items such as maintenance services, utilities, insurance, etc. This means that the VAT collected as part of your CSF will then be paid to the Federal Tax Authority.

How VAT works:

• Homeowner – All homeowners are charged 5% VAT payable to ECM
• Emaar Community Management (ECM) – ECM pays 5% VAT to relevant suppliers and service providers.
• Federal Tax Authority – ECM pays the difference between the VAT collected from customers and VAT paid to suppliers to FTA. Suppliers and service providers also pay a 5% VAT to FTA.

Source: Federal Decree Law No. 8 of 2017 & Cabinet Decision No. 52 of 2017

We evaluate actual expense trends from the previous year based on individual cost items. Depending upon the operational plan, we decide whether or not to include them again in the following year’s budget.

We periodically review resources at site to find ways of improving performance by employing new technology and operational methods based on international best practices.

By regularly reviewing service provider contracts, we can evaluate key areas of improvement, such as performance and cost savings. This helps us to determine future budgets and predict expenses.

Capital assets that are no longer under the manufacturer’s warranty are regularly reviewed for major maintenance or replacement. Essential equipment, such as sewage pumping stations and/or similar items, support the overall infrastructure of the community.

This amount allows for the setting aside of a small portion of CFS collections as a provision in case certain receivables are required to be written off in the future.

Finally, any surpluses or deficits from previous years are brought into consideration during the determination of the CSF rate for the current year.

The cards used by residents to enter their building or parking areas are provided to homeowners at a small cost and the income generated is credited to the community’s account.

To ensure that only legitimate businesses gain access to the community, we regulate activity with the provision of a permit that allows the distribution of promotional material. An administration fee is collected and booked as income to the community.

To ensure adherence to the Community Rules and architectural codes, NOVs are issued along with Violation Penalties to those who fail to comply.

This is income generated from other avenues such as interest earned through call accounts or bounced cheque charges.

• Log on to www.arabianranchestwo.ae from anywhere, any time.
• Online banking services (account holders only): Log on to your personal online bank account at RAKBANK, Mashreq Bank, Emirates NBD or Dubai Islamic Bank and follow the payment instructions.

• Make cheque and credit/debit card payments using our interactive payment kiosk located at The Ranches Souk.

• Directly transfer funds from your bank account to the community bank account as detailed on the front of your CSF Invoice.

• Setup auto pay instructions for payment of future invoices on their due dates.
• Please follow the online payment link on the invoice and log onto www.arabianranchestwo.ae for setup.