Dubai elegantly displays modern grandeur and inventive ingenuity.  As part of its progressive approach to regulating tourism, the city has implemented a Dubai tourist tax. All overnight visitors to Dubai hotels and apartments must pay the tourist fee. The tourist tax in Dubai is determined by the kind of room and the hotel’s star rating. 

This Dubai tourist tax guide explains the types of taxes visitors to the UAE can anticipate paying. It includes how the 5% VAT implemented in 2018 operates and the refund options open to them.

What is the amount of Dubai's tourist tax?

The Dubai Corporation for Tourism and Commerce Marketing, a new tourism company, will partly be funded by the proceeds from the “Tourist Dirham.” This group was established to advertise Dubai and draw in more visitors. Enhancing Dubai’s tourism sector is another goal shared by the DCTCM. They intend to raise between 300 and 330 million dirhams annually through the Dubai Tourist Tax 2024. It is anticipated that the imposition of the new tourist tax in Dubai won’t result in fewer travellers to Dubai each year.

Hotel Taxes in Dubai

tourist tax in Dubai

It is likely that when you make an online hotel reservation in Dubai, your quoted price includes the gross rate for the room alone, not the Dubai tourist taxes paid to the hotel directly.

Although these taxes on hotels in Dubai have changed over time, as of 2024, you should budget for the following:

  • Municipality charges 7% 
  • VAT 5%
  • 10% of the property service charge
  • “Tourism Dirham Fee”

Hotels in Dubai charge a “Tourism Dirham Fee” for each night a room is occupied; this charge is only applicable for an aggregate of 30 nights in a row. The charge varies, ranging from AED 7 to 20, depending on the hotel’s grade or category. This charge is frequently called the city tax or the Dubai hotel tax.

Dubai's Dining Taxes

tourist tax in Dubai

The following fees may also be applied to your dining bill if you order room service or eat at a hotel restaurant:

  • Service Fee Municipality Charge 5% VAT: In restaurants that aren’t connected to hotels, the standard VAT rate is 5%. In the United Arab Emirates, tipping is not mandatory for restaurant guests. If they are pleased with the service, many may either round up or add 10% to 15%.
  • You can anticipate paying the following at a Dubai food court fast-food restaurant: just the VAT of 5%. The price you advertise ought to cover this.
  • Shopping for food at a supermarket: There are no food goods in the supermarket that are zero-rated; all food is subject to the 5% VAT. The listed price already includes value-added tax (VAT).

Alcohol Tax in Dubai

tourist tax in Dubai

As you may be aware, licensed establishments in Dubai Do sell alcohol to non-Muslims.

However, it has a price: “excise tax,” sometimes known as “Sin Tax,” is imposed for fun. Since this excess is added during the importation stage of the sale procedure, you won’t see it. The VAT and any hotel service fees are the only items that you, the customer, will see on separate lines.

The last 30% tax at retail establishments will be eliminated in 2024 if you obtain a liquor license for home use (which is now granted to visitors as well; however, it is unclear how much of the 30% reduction will be passed on to customers).

Refund of Dubai tourism tax

tourist tax in Dubai

During their visit to Dubai, visitors and tourists can claim back the Value Added Tax (VAT) they paid on the items they bought. This refund process is carried out smoothly through an integrated electronic infrastructure that connects retailers participating in the “Tax Refund for Tourists Scheme” with all UAE entrance and exit ports.

The Federal Tax Authority (FTA) implemented a five percent value-added tax (VAT) in January 2018. In the final quarter of the same year, the FTA created a fully digital tax-free shopping service that allows visitors to claim a VAT refund. Planet, the only company running the Dubai tourist tax refund program, is in charge of it, with the FTA providing oversight. There are prerequisites:

  • The “Tax Refund for Tourists Scheme” store must be used to purchase the goods.
  • The Federal Tax Authority’s Refund Scheme does not exclude goods.
  • Along with the purchased materials, you must clearly intend to depart the United Arab Emirates within ninety days after the supply date.
  • Within three months after the delivery date, you must export the items you have purchased out of the United Arab Emirates.
  • The Federal Tax Authority has established criteria and processes that must be followed when purchasing and exporting commodities.
  • Spend a minimum of 250 AED.

Tourist Tax in Dubai: Shop Duty-Free

Discovering Dubai’s duty-free shopping is easy. To take full advantage of this offer, follow these steps:


  • Travelers can request tax-free purchases while they shop, valid for purchases of AED 250 or more. A valid travel document will be scanned by the visitor and integrated into the payment system.
  • The store assistant will enter the visitor’s information into the Planet system.
  • The store assistant will attach a “tax-free” tag to the rear of the sales receipt.
  • A digital tax-free form will be created.
  • The passenger must validate the transaction at the airport within ninety days of the purchase date.


The United Arab Emirates has imposed a tourism tax in Dubai to support the growth of its commerce and tourism industries. Travelers staying in a range of lodging establishments, including as hotels, hotel flats, restaurants, and resorts, are subject to this fee.

AED 7 to AED 20 is the Tourism Dirham Fee per room in Dubai, and it is charged for each night of occupation (up to 30 nights). Generally speaking, this is determined by the hotel's grade. Abu Dhabi adds 4% more tax on hotel bills, and each room costs AED 15 each night.

Value Added Tax (VAT) of five per cent was implemented by the Federal Tax Authority (FTA) in January 2018. In the last quarter of the year, a 100 per cent digital tax-free shopping service was made available to tourists in Dubai.