UAE Federal - Law No. 8 of 2017 on Value Added Tax (VAT Law), shall be applicable in UAE starting from 1st January 2018.
The additional 5% VAT is to be added and applied on the room charges/night and the Service Charge of 10% while it is not imposed on the Tourism Fee and the Municipality Fee.
On the directives of HH Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai and Chairman of the Executive Council, we would like to inform you that the Dubai municipality fees will decrease from 10% to 7%.
Reduction will apply affectively from 01/07/2018.