What is the VAT rate on hotel apartments in Dubai?
As of 2024, the Value Added Tax (VAT) rate on hotel apartments in Dubai is 5%. This standard VAT rate applies to most goods and services in the United Arab Emirates, including hospitality accommodations like hotel apartments. When booking a hotel apartment in Dubai, guests will incur a 5% VAT charge on the total cost of their stay.
In addition to the VAT, guests are also required to pay a Tourism Dirham Fee, which ranges from AED 7 to AED 20 per room per night, depending on the property's classification and star rating. This fee is mandated by the Dubai Department of Economy and Tourism (DET) and contributes to the development of the city's tourism infrastructure.
Key Points to Remember:
VAT Rate: 5% on the total accommodation cost.
Tourism Dirham Fee: AED 7 to AED 20 per room per night, based on the hotel's star rating.
Applicability: These charges apply to all hotel apartments and are included in the final bill presented to guests.
Example Calculation:
If your hotel apartment booking costs AED 1,000 per night:
VAT (5% of AED 1,000): AED 50
Tourism Dirham Fee (e.g., AED 15 per night): AED 15
Total Additional Charges per Night: AED 65
Total Cost per Night: AED 1,065
When planning your stay in Dubai, it's important to factor in these additional costs to your budget. These taxes are standard across all booking platforms and are implemented to support the city's growth and maintain its world-class tourism standards.
Tip: Always check with your hotel or accommodation provider for the most up-to-date information on taxes and fees, as rates are subject to change based on government regulations.