Tourist tax in UAE A complete guide

Known for its luxury cities, desert landscapes, and world-class hospitality, the UAE offers travelers a distinctive experience. In this tax guide, you’ll find everything you need to know about the UAE’s tourist taxes current rates, who pays them, how compliance works, and how to manage them smoothly.

Why do emirates in the UAE levy tourist taxes?

Emirates in the UAE levy tourist taxes and hospitality-related fees to help support tourism infrastructure, visitor services, and destination development. Depending on the emirate, these charges may appear as Tourism Dirham fees, tourism fees, VAT, municipality fees, or service charges on accommodation bills. This structure helps maintain a high-quality visitor experience across the UAE’s leading tourism destinations.

Tourist tax by emirate in the UAE

Tourist tax rules in the UAE are set at the emirate level, so the rates and fee structure vary across destinations such as Dubai, Abu Dhabi, and Ras Al Khaimah. All emirates levy a form of tourist tax. Want to know how tourist tax works across the UAE? Trippz collects tourist tax data, and the overview below lets you explore the specific tourist tax rules for three out of seven emirates:

• Abu Dhabi
• Dubai
• Ras Al Khaimah

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For tourists

When is tourist tax payable in the UAE?

In the UAE, tourist taxes are applied at the emirate level, meaning the type and rate of tax depends on where you are staying. Dubai, Abu Dhabi, and Ras Al Khaimah each have their own tourist tax frameworks  ranging from Dubai's flat Tourism Dirham Fee to Abu Dhabi's percentage-based tourism fee. Across all emirates, a national VAT of 5% also applies to taxable goods and services including shopping, dining, and many hospitality-related services, added at the point of sale.

Who is exempt from tourist tax?

Exemptions vary by emirate and tax type. For VAT, tourists in the UAE do not usually receive an automatic exemption at the time of purchase; hotel stays, meals, and other consumed services also fall outside the tourist VAT refund scope, meaning VAT paid on these is generally not recoverable. For emirate-level tourist fees such as Dubai's Tourism Dirham, there are no nationality-based exemptions, though the fee is capped at 30 consecutive nights for the same stay.

Who is eligible for a VAT refund?

Eligible international visitors may claim a refund on VAT paid for qualifying retail purchases through the UAE's tourist VAT refund scheme. In general, this applies to non-resident tourists aged 18 or above who do not hold a UAE residency visa and who shop at participating retailers. The goods usually need to be exported from the UAE within 90 days of purchase, and the minimum spend is AED 250 per invoice. As rules and eligibility conditions may change, travelers should check the latest requirements before departure

The structure of tourist taxes in the UAE

In the UAE, tourist taxes are structured at two levels: a federal VAT that applies uniformly across all seven emirates, and emirate-level tourist fees that vary by destination. The standard VAT rate is 5% and was introduced on 1 January 2018 under the UAE's Federal Decree-Law on Value Added Tax. Emirate-level tourist fees  such as Dubai's Tourism Dirham, Abu Dhabi's tourism fee, and Ras Al Khaimah's Tourism Dirham  are set independently by each emirate and apply specifically to accommodation.

Tourist tax at the federal level (VAT)

The UAE's Federal Tax Authority (FTA) sets the legal framework for VAT, determines the rate, and oversees compliance and collection. The FTA manages all VAT registration, filings, and remittances through its digital platform, EmaraTax. This centralised approach ensures that VAT rules are consistent for all businesses and visitors across the country.

Tourist tax at the emirate level

Dubai, Abu Dhabi, and Ras Al Khaimah each levy their own accommodation-specific tourist tax on top of VAT. Dubai charges a flat Tourism Dirham Fee of AED 7–20 per room per night depending on the property's star classification. Abu Dhabi applies a 4% tourism fee on the total accommodation bill, while Ras Al Khaimah charges a flat AED 15 per room per night. The remaining four emirates Sharjah, Fujairah, Ajman, and Umm Al Quwain do not currently have a dedicated tourist tax framework beyond VAT.

Tourist tax and VAT at the point of sale

When staying in the UAE, visitors encounter tourist taxes at two points, one at their accommodation and at the point of purchase. At accommodation, emirate-level tourist fees such as Dubai's Tourism Dirham are added to the hotel bill and collected by the property at checkout. Separately, VAT at 5% applies to all taxable goods and services  including accommodation, dining, shopping, and many hospitality-related services and is charged at the point of sale. Registered businesses collect VAT on behalf of the FTA and remit the net amount periodically through the EmaraTax platform

What are the benefits of tourist taxes for visitors and the UAE

Revenue from both VAT and emirate-level tourist fees contributes to maintaining high-quality visitor infrastructure, public services, and destination development across the UAE. Emirate-level tourist fees are administered locally and support tourism promotion, hospitality services, and regional development. For tourists, the UAE's tax-free shopping scheme means eligible international visitors can reclaim VAT paid on qualifying retail purchases, enhancing the overall visitor experience.

Payment and administration

Registered accommodation providers collect VAT and, where applicable, emirate-level tourist fees on behalf of the relevant authorities. Tourists can recover VAT on eligible purchases through Planet, the FTA's exclusive operator of the Tourist VAT Refund Scheme, at departure points including airports, seaports, and land borders. The UAE also recently launched the world's first VAT refund system for e-commerce purchases, allowing tourists to apply for refunds on qualifying online purchases made during their stay.

Development of tourist taxes in the UAE

The UAE's tourist tax landscape has been stable and predictable since VAT was introduced in January 2018 at a fixed rate of 5%. Unlike many destinations where tourist-related taxes shift frequently, the federal VAT rate has remained unchanged, with no seasonal variations, accommodation-type adjustments, or regional differences. At the emirate level, Abu Dhabi reduced its tourism fee from 6% to 4% in September 2023, reflecting efforts to lower the overall accommodation cost burden and encourage longer stays.

In recent years, the main developments have focused on improving how tourist taxes are administered and making the refund process more accessible. The FTA has expanded the Tourist VAT Refund Scheme significantly, growing the network of participating retailers to around 19,000 outlets and rolling out over 100 self-service kiosks at key departure and retail points. The UAE also launched the world's first VAT refund system for e-commerce purchases by tourists, reflecting a continued push toward a fully digital, seamless tax experience.

Frequently asked questions from tourists

• Am I, as a guest, responsible for properly remitting tourist tax?

  In the UAE, the responsibility for collecting and remitting both tourist tax and VAT falls on the accommodation provider  not the guest. Hotels, hotel apartments, and licensed short-term rental operators are required to charge the applicable emirate-level tourist fee (such as Dubai's Tourism Dirham) and 5% VAT on taxable services, and include both on your invoice. As a guest, your only responsibility is to pay the amount shown on your bill. You are not required to file anything or remit any tax separately to any authority.

• At what point do I have to pay tourist tax?

  Tourist tax and VAT in the UAE are typically paid as part of your accommodation bill, at one of these points:

  • At checkout: Most hotels and hotel apartments include both the emirate-level tourist fee and VAT in the final bill you settle when checking out.

  • At the time of booking: Many online platforms such as Booking.com include VAT and, in some cases, tourist fees in the total price shown at the time of reservation, so you pay upfront as part of the booking.

  • At the point of purchase: For retail shopping, dining, and other services, VAT at 5% is added at the point of sale and paid immediately as part of the transaction.

  Always review your booking details or invoice to confirm whether tourist tax and VAT are already included in the price shown.

  cially in smaller or private accommodations, the host may request the tourist tax separately during your stay. This could happen if they collect it in cash or if it’s handled differently from the room rate.

  Always check with your accommodation provider or review your booking details to understand when and how the tourist tax will be collected.

  
  

• Do I have to pay the tourist tax in cash to the accommodation provider?

  No, you generally do not have to pay the tourist tax in cash to the accommodation provider. In most cases, the tourist tax is included in your total accommodation bill and can be paid using the same payment method you use for the rest of the booking, whether that’s by credit card, debit card, or another electronic payment method.

  However, in smaller establishments or private rentals, some hosts might prefer or request payment in cash, though this is less common. It’s always a good idea to confirm with your accommodation provider in advance if you’re unsure about the payment method for the tourist tax.

• Can I pay tourist tax in cash?

  No. Tourist tax and VAT in the UAE are included in your total bill and can be paid using any accepted payment method like credit card, debit card, or digital payment. There is no requirement to pay tourist tax or VAT separately or in cash. In the rare case of smaller private rentals, payment preferences may vary, so it is always worth confirming with your host in advance.

  Failure to register could lead to issues with your stay or with local authorities, so it’s important to complete this step as required.

• Do I need to register upon arrival at my hotel?

  Yes, registering upon arrival at your hotel in the UAE is mandatory for all guests. Hotels are required to record guest details including name, passport or ID number, and nationality in compliance with UAE regulations. This registration is typically completed at check-in, either on a paper form or electronically, and takes only a few minutes. The information collected is used to fulfil local legal and reporting requirements, including those linked to tourist tax administration.

  
  

• May the hotel where I am staying make a copy of my passport for guest registration?

  In the UAE, it is standard and legally required practice for hotels to verify the identity of all guests at check-in. Hotels typically record your passport or ID details as part of the mandatory guest registration process required under UAE regulations. Many hotels will take a copy of your passport to facilitate this, which is common practice across the hospitality industry in the UAE. If you have questions about how your personal data is stored or used, you can ask the hotel directly. UAE data protection regulations require that personal information be handled responsibly and used only for lawful purposes.

• I have cancelled my stay. Do I still have to pay tourist tax?he booking platform?

  No. If you have cancelled your stay and did not use the accommodation, neither the emirate-level tourist fee nor VAT on the room rate would apply, as both are charged on services actually consumed. If your cancellation falls within the property's cancellation policy and no charges are levied, there is nothing to pay. However, if a cancellation fee is charged by the hotel, VAT may apply to that fee as it is a taxable service. If you were charged tourist tax or VAT on a cancelled booking you believe should be exempt, contact the accommodation provider directly to clarify.

For hosts

Renting out in the UAE: what hosts need to know

Do you rent to tourists in the UAE? If so, it is important to understand your obligations as a host. You will likely need to register your property with the relevant authority, keep accurate guest records, and ensure VAT is correctly charged and remitted to the Federal Tax Authority (FTA).

This can seem complex and overwhelming. Fortunately, we are here to help you get started!

How Trippz helps

Obligations of the host

If you are renting to tourists in the UAE, here are the key points to be aware of regarding VAT:

• Obligation to register for VAT: 

If your annual taxable turnover meets or exceeds the mandatory registration threshold, you are legally required to register for VAT with the FTA and charge 5% VAT on taxable accommodation services. Businesses below the threshold may register voluntarily.

• Charging VAT correctly: 

VAT must be charged at 5% on taxable rental income and shown as a separate line item on every guest invoice. It should not be absorbed into the room price without disclosure.

• Recording and filing:

 Registered hosts must maintain accurate VAT records and submit regular VAT returns to the FTA through the EmaraTax platform. Returns are typically filed quarterly.

• Transparency for guests: 

Hosts should make clear to guests that VAT is applicable and ensure it is correctly reflected in booking confirmations and invoices — whether through a platform or directly.

• Property registration:

 Beyond VAT, hosts in Dubai must register their property with the Department of Economy and Tourism (DET) as a licensed holiday home before accepting guests. Similar requirements apply in Abu Dhabi and other emirates. Operating an unregistered property can result in fines.

• Guest registration: 

Hosts are required to record guest details including name, passport number, nationality, and length of stay in compliance with UAE regulations. This information may need to be reported to the relevant local authority.

• Controls and sanctions: 

The FTA conducts audits and compliance checks to ensure VAT is correctly collected and remitted. Non-compliance can result in penalties and fines. Local authorities such as DET also carry out inspections on registered and unregistered holiday home operators.

Guest registration in the UAE

If you rent accommodation to tourists in the UAE, certain guest data must be recorded at check-in. This information is required to comply with UAE regulations and to support accurate reporting to the relevant local authority.

The following details of the main guest must be recorded:

• Full name
• Nationality
• Passport or Emirates ID number
• Date of birth

In addition, the following data is typically stored:

• Arrival and departure date: The exact check-in and check-out dates for each guest.
• Number of persons: The total number of guests staying in the accommodation, including children.
• Purpose of stay: Some authorities may require the reason for the visit, such as tourism or business, as part of the registration record.

How the data is collected?

Guest data is usually recorded digitally at check-in, either through the property's own system or via the booking platform. In Dubai, licensed holiday home operators are required to register guests through the DET's approved systems. It is important to handle all personal data securely and in compliance with UAE data protection regulations, ensuring that guest information is used only for lawful registration and reporting purposes.

Storing guest registration data in the UAE

In the UAE, accommodation providers are required to retain guest registration records in line with federal and emirate-level regulations.

Legal basis
Guest registration requirements are set by UAE hospitality and immigration regulations. Licensed holiday home operators in Dubai must also comply with DET record-keeping rules. It is advisable to check the specific requirements of the emirate in which your property is located.

Data protection
All guest data must be stored securely in line with UAE data protection laws, protected from unauthorised access, and properly disposed of once the applicable retention period has expired.

Electronic and physical storage
Records may be stored electronically or in paper form, provided they are secure, complete, and readily accessible in the event of an inspection by local authorities.

To ensure full compliance, always verify the specific record-keeping requirements with the relevant local authority for your emirate.

Handling VAT in the UAE

• Remitting VAT

  Although the exact rules of tourist tax vary by municipality in Switzerland, everywhere it is the accommodation provider who remits the tourist tax to the municipality/canton. In most municipalities this is done every (half) year, but municipalities may decide in which period the tourist tax should be remitted.

• Collecting VAT

  VAT in the UAE is charged at a flat rate of 5% on taxable accommodation services, making the rate straightforward to apply. Unlike Switzerland's tourist tax, the UAE VAT rate does not vary by guest age, length of stay, or season; the same 5% applies consistently. If a guest checks out earlier than planned and a refund is issued for unused nights, VAT should be adjusted accordingly on the invoice or through a credit note.

• VAT when renting through an online booking platform

  Do you rent out your accommodation through a platform such as Airbnb or Booking.com? In the UAE, some platforms may collect and remit VAT on your behalf depending on their setup and your agreement with them. If you also accept direct bookings through your own website or independently managed channels, you remain responsible for correctly charging and remitting VAT on those bookings yourself. Always confirm with each platform whether they handle VAT collection on your behalf or whether you need to manage it independently.

• Storing your VAT records

  As with guest registration, your VAT records can be subject to audit by the FTA. You are required to keep accurate records of all bookings, invoices, VAT charged, and VAT returns filed for a minimum of 5 years. Good record-keeping should include details of who stayed in your accommodation, the dates and duration of each stay, the amounts charged, and the VAT collected and remitted for each period

Frequently asked questions from hosts

• Can you receive fines if you don't pay VAT?

  Yes. Registered accommodation providers who fail to collect, report, or remit VAT correctly can face significant penalties from the Federal Tax Authority (FTA). The UAE's VAT compliance framework is strictly enforced, and non-compliance can result in financial fines, back-payment demands, and in serious cases, operational consequences. Staying on top of your VAT obligations is essential.

  
  

  
  

• Am I required to request a rating for my accommodation?

  No, you are not required to request a rating for your accommodation. While guest reviews can improve your visibility on booking platforms, requesting them is entirely optional.

• To whom should I remit VAT?

  VAT collected from guests must be remitted to the Federal Tax Authority (FTA) through the EmaraTax portal. The process involves filing a VAT return summarising the VAT you have collected and any input VAT you are entitled to deduct, and then paying the net amount due to the FTA within the prescribed deadline.

• Should I enclose guest registration data as proof when remitting VAT?

  Guest registration records do not need to be submitted as part of your VAT return filing. However, you must retain all supporting records — including guest invoices, booking details, and VAT calculations — as the FTA may request them during an audit. Always keep your records well-organised and accessible.

• Does the FTA have a specific form for VAT remittance?

  Yes. VAT returns must be filed through the FTA's official EmaraTax platform. The return includes details of your total taxable supplies, VAT collected, eligible input tax, and the net VAT payable or refundable for the period. You can access the platform and find guidance at the FTA's official website.

• Do I declare per property, or do I merge all my properties?

  In the UAE, VAT registration and filing is done at the business entity level, not per individual property. If you manage multiple properties under the same business, you would typically file a single consolidated VAT return covering all taxable supplies made by that entity. If properties are held under separate legal entities, each entity must file its own return. Always confirm your specific structure with a tax adviser to ensure compliance.

• Do I also have to pay VAT on cancelled bookings?

  No. If a booking is cancelled and the guest did not stay, VAT is not payable on that transaction. If VAT was collected in advance and the booking is subsequently cancelled, you should issue a credit note and adjust your VAT records accordingly. Only services actually provided are subject to VAT.

• How do I make this all as simple as possible?

  To simplify the process, consider using specialised software that automates VAT calculation, guest registration, and compliance reporting. Trippz is designed by and for hosts, so we can help streamline the administrative burden by integrating with booking platforms, automating guest registration, and supporting tax compliance on your behalf. Keeping detailed and organised records from the start makes audits straightforward and gives you full confidence that your VAT obligations are met.

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Trippz: the authority on tourist tax

Tourist tax is set locally and rates change without warning. Trippz tracks every change and keeps the data current, which is why travel platforms and property software, including Airbnb, Booking.com and Expedia, rely on Trippz to calculate tourist tax and register guests in every market they serve.

How Trippz stays current

Trippz checks tax rules jurisdiction by jurisdiction against official municipal and national sources. When a rate or rule changes, the update happens automatically rather than on a periodic review cycle. This is the same monitoring that travel platforms and software vendors depend on to stay accurate everywhere they operate.

One tax engine, every market

Send a location, get the applicable rate, instantly and correctly calculated. Travel platforms and property software embed this calculation directly into their own product, so every booking is taxed correctly without building or maintaining a rate engine in house. It is the same logic behind every rate on this page.

Explore Trippz for Platforms

Frequently asked questions about the use of Trippz

• How can platforms and software vendors use Trippz?

  Trippz provides tourist tax content and a ready made calculation engine through one API. Platforms and software vendors add accurate tax calculation to their product without maintaining a rate database in house. Guest registration and authority connections are available as a separate capability for those who need it.

• How does Trippz keep tourist tax rates current?

  Trippz checks the jurisdictions it covers against official sources and updates rates automatically when a city or country changes them.

  
  

• Which countries and cities does Trippz cover?

  Trippz maintains tourist tax data across a wide range of countries and cities. See the full overview in our tourist tax guides.

• Is Trippz's data and infrastructure secure?

  Yes. Trippz is SOC1 Type 2 and SOC2 Type 2 certified and GDPR compliant, so platforms and software vendors can embed tourist tax calculation without adding security or compliance risk of their own.

• Who uses Trippz for tourist tax?

  Trippz provides tourist tax data and calculation to travel platforms and property software across Europe, including Airbnb, Booking.com and Expedia. The same infrastructure that powers stays booked through the biggest platforms in travel is available to any platform or software vendor through the API.