Hotel guests in the country are subjected to five per cent VAT, in addition to the existing 20 per cent
municipality fee and service charges combined, making the average room rates costlier. Additionally,
various leisure activities have seen pricing adjustments to include five per cent VAT from January 2018.
With effect from January 1, 2018, valued added tax (VAT) will be a reality in the UAE. As the real estate sector affects most expat lives in the UAE, let us take a look at the implications of the new levy on this industry.