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What Is the VAT Rate on Hotel Apartments in Dubai?

The VAT on hotel apartments in Dubai is charged at the standard rate of 5%. This tax applies to all hospitality services, including the short-term rental of hotel apartments.

Hotel apartments are treated similarly to hotels in terms of taxation, and the VAT is levied on the total rental cost. Guests renting hotel apartments should expect this 5% VAT to be included in their bills, in addition to other possible fees like the tourism dirham and service charges. This system ensures uniformity in the taxation of short-term accommodations across Dubai’s hospitality sector.

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Dubai real estate agency,
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Office 1403, Arenco Tower, Media City, Dubai, UAE

+971 4 261 8838

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Inside Realty

Dubai real estate agency,
ready to help 24/7

Office 1403, Arenco Tower, Dubai

+971 4 261 8838

mail@insiderealty.ae

Inside Realty © 2025