New 5% Tax On UAE H...
 

New 5% Tax On UAE Hotels Kicks In Today

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(@lucky)
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With reduced oil revenue in the Middle East, we've seen all kinds of changes in the UAE, Qatar, etc. Businesses (including airlines) are being run in more of a sustainable way, and we're seeing existing taxes being increased, and new taxes being introduced. For example, in the past I've written about how the airport taxes…

Continue reading: New 5% Tax On UAE Hotels Kicks In Today

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15 Replies
15 Replies
Diamond
(@sean-m)
Joined: 5 years ago

Member
Posts: 1238

The service charge is an optional charge levied by the property and is not imposed nor collected by the government. You can negotiate it away in corporate rates.

Also, the tourism dirham charge is a flat per night charge that has to be paid directly to the property (viz. Not included in prepaid rates via third party agents). It's value ranges from AED 7 to AED 20 depending on the hotel quality. It is not applicable to stays of 30 consecutive days or longer.


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 Red
(@Red)
Joined: 13 years ago

Posts: 134

I've had to argue pretty hard before to get the tourism dirham waived on an award stay.


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 Matt
(@Matt)
Joined: 9 years ago

Posts: 2

We will be voting with our money.
28% in extra taxes??? No, sorry.


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 Matt
(@Matt)
Joined: 9 years ago

Posts: 2

The taxes are anti tourist and the countries will see a decline in tourist revenues


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Gold
(@ben-holz)
Joined: 5 years ago

Member
Posts: 0

@Bumbles don’t you have anything better to do than insult and chat shit on new years day mate?


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(@Potato)
Joined: 10 years ago

Posts: 135

@ Bumbles: Why would you use such vile language? Do you talk to your mother with that mouth? Shame on you.


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 JRMW
(@JRMW)
Joined: 9 years ago

Posts: 183

Wow, a VAT on the service charge?

That’s a bitter pill to swallow


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(@Andrew)
Joined: 14 years ago

Posts: 200

So really, taxes and fees on hotel stays went from ~23% to ~28%. Yes, that’s an increase, but if I were a tourist willing to pay 23% in taxes/fees, I am not sure an extra 5% would make all that much difference.


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 W
Diamond
(@w)
Joined: 5 years ago

Member
Posts: 0

Just wondering, is the Dubai Hyatt the Grand Hyatt?


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(@schars)
Joined: 10 years ago

Posts: 886

I mean, what can we do? Still wanna go back to Dubai, this extra 5% wont deter me.


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(@scott-sullivan)
Joined: 5 years ago

Member
Posts: 0

Nothing like paying more taxes to a totalitarian regime with no transparency on how they spend the ‘public’ coffers on their own ‘royal’ household. :/


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 bob
(@bob)
Joined: 14 years ago

Posts: 284

Gonna only use points in the UAE now, their taxes are outrageous. I was planning on staying at a Jumeirah resort this spring, but will stay at the Ritz or St. Regis now using points.


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Diamond
(@sean-m)
Joined: 5 years ago

Member
Posts: 1238

@Red - The tourism dirham charge applies on award stays or any other type of promotional or complimentary stay. If it was waived, then that only means that the hotel paid it out of pocket rather than collecting it from you.

@JRMW - Service charges go to the hotels pocket so they are VAT chargeable like the room rate is.


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(@Rob_Riyadh)
Joined: 9 years ago

Posts: 7

FYI - Saudi Arabia has also introduced a 5% VAT effective January 1st, 2018. We were also greeted with an increase on petrol (gasoline) and electricity rates.

Fun times.


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(@Martin quinnin)
Joined: 9 years ago

Posts: 1

I don’t see the difference from hotels in the US. Las Vegas in particular. Resort fee is compulsory yet not included in the advertised rate. At some lower end properties, this is more than the room rate!


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