Navigating UAE Taxes & Fees on Group and Long Stay Hotel Bookings

Understanding UAE taxes and municipal fees is essential when evaluating long-stay and group booking quotes. Clear contract reviews prevent unexpected costs on final invoices.

UAE Hotel Tax Breakdown

• Value Added Tax (VAT): 5% applied to room rates and services.
• Municipality Fee: 7% standard rate across Dubai hospitality.
• Service Charge: 10% applied by hotels.
• Tourism Dirham Fee: Fixed flat rate per bedroom per night (ranging from AED 7 to AED 20 based on hotel star rating) for the first 30 nights.

Frequently Asked Questions (FAQ)

Do Tourism Dirham fees apply to the entire duration of a long stay booking in hotel Dubai?

In Dubai, the Tourism Dirham fee is charged only for the first 30 consecutive nights of a continuous stay. Stays extending past day 30 are exempt from this fee for the remaining consecutive days.

Are quoted corporate rates long stay packages inclusive of all municipal fees and VAT?

Proposals can be issued as “Net” (excluding taxes) or “Inclusive” (all taxes included). Always verify that your sales contract explicitly breaks down all applicable fees.