Are you planning a sufficient budget for your trip to Dubai?
While Dubai is well-known as a tax-free sanctuary for many of its foreign expatriate employees, make no bones: there are a slew of other taxes to contend with!
In this tourist tax guide, we’ll go over the types of taxes you may anticipate spending as a visitor to the UAE, as well as how the new 5% VAT operates and the tourist reimbursements available. Everything you need to know about the Dubai tourism tax is right here.
Hotel Taxes in Dubai
While booking a hotel in Dubai online, you are almost certainly being given the gross cost for the hotel suite only, not the taxes, that are funded directly to the hotel.
These taxes on Dubai hotels have fluctuated a lot throughout the years, but as of 2020, you can anticipate paying:
- The VAT rate is 5%.
- Fees charged by the municipality 7% of the total cost of the property service charge 10% of the total cost of the property service fee
- The hotel tax structure in Abu Dhabi, which is just down the track, is a little unique. This article will tell you everything you need to know about Abu Dhabi’s local tourism tax.
Dubai’s Dining Taxes
You can anticipate costs to be added to your meal bill, whether meal in a hotel restaurant or requesting room service:
- Municipality Fee VAT 5% Service Charge
- You should anticipate paying just the 5% VAT in restaurants not affiliated with a hotel.
- In the United Arab Emirates, you aren’t compelled to give a tip as a restaurant patron. If they are pleased with the treatment, many may scale up or add 10-15%.
- In a Dubai food court quick food establishment, you may expect to have to pay:
- There is only a 5% VAT. This should be included in the price you quote.
- Buying groceries in a supermarket
- There were no zero-rated foods in supermarkets, so all food is subject to the 5% VAT.
Alcohol Tax in Dubai
Is there any alcohol in Dubai? Is it subject to taxation?
Alcohol is applicable to non in Dubai from licensed locations, as you may know.
It does come at a price, though, as “excise tax” (sometimes known as “Sin Tax”) is imposed for enjoyment. This extra is applied during the importing step of the sale procedure so that you won’t see it. You will only notice a different line item for VAT and any hotel service costs if you are a customer.
The same municipal and service fees will apply if you order the drink in a bar or restaurant. If you have a liquor license for personal consumption (now also accessible to tourists), you will have to pay an additional 30% tax at Dubai’s major retailers. You can only see the 5% VAT as a consumer, although it is already included in the cost you have seen on the shelf.
Dubai’s other taxes and levies
As you can see, there have been no direct taxes; however, there are lots of taxes to be aware of!
Tax is paid by the supplying wholesaler so that you won’t notice it as a customer, but commodities like carbonated drinks, energy drinks, sweetened drinks, tobacco and tobacco products will.
Tourist Tax Refund Scheme in Dubai
- Tourists were still required to pay the remaining price of VAT when it was initially introduced in 2018 to accommodate Dubai tourism taxes.
- Tourists who are only visiting the UAE for a short time can now request a VAT refund through Planet, which is working on behalf of the Federal Tax Authority. Of all, there are certain restrictions:
- The goods should be acquired from a registered store in the ‘Tax Refund for Tourists Scheme.’
- The Federal Tax Authority’s Refund Scheme doesn’t exclude goods.
- You must expressly intend to depart the UAE within 90 days of receiving the supplies, as well as the market and found.
- You have three months of the date of supply to transfer the acquired products out of the UAE.
- The purchasing and exporting of products must be performed following the Federal Tax Authority’s processes and standards.
- Pay a couple of 250 AED.
Before you leave… Read.
There are a few more things to consider while arranging a trip to Dubai.
- Get a Dubai Sight seeing pass. With a Dubai Pass, you can still save up to 50% on famous Dubai attractions.
- There is no sales tax on majority of the products you buy in Dubai from Duty free shops
- The average Tourist tax in Dubai is 10%
- Remember to bring your insurance