Abu Dhabi – Mubasher: The Emirati Federal Tax Authority announced that a 5% value-added tax (VAT) would be levied on the prices of hotel nights.
The travel ticket’s prices would be zero-rated, according to Alkhaleej newspaper, citing the authority as saying.
In March 2014, the Dubai Department of Tourism and Commerce Marketing had started to charge long-staying hotel guests a tourism dirham fee, amounting to a maximum of AED 20 for the hotel room for one month.
In 2016, Abu Dhabi approved imposing a municipality fee on hotels at 4% of the guest receipt and AED 15 on each room, while in Ras Al-Khaimah an AED 15 tourism fee is levied on each room.
Earlier, the authority had announced that the VAT would be applied starting 1 January 2018.
The UAE is expecting VAT revenues from all goods and services to reach around AED 10 billion to AED 12 billion in the first year.
