Dubai Tourism Fees, VAT & Regulations - A Simple Guide for Owners (2025)

Letting a holiday home in Dubai is rewarding, but it comes with clear rules you must follow. The Department of Economy and Tourism (DET) oversees licensing and permits, and owners are responsible for collecting the Tourism Dirham from guests and remitting it on time. If you are VAT-registered, you must also charge 5% VAT on short-term stays and issue proper tax invoices. This guide explains each requirement in plain English and shows how our professional management handles the paperwork, deadlines and platform settings so you stay fully compliant without the stress.

1) Who regulates holiday homes in Dubai?

• Department of Economy & Tourism (DET) licenses holiday homes and runs the Holiday Homes online system (permits, classification, guest check-in/out reporting).

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What you need:

• Operator registration (as an individual owner or professional operator).

• Unit permit for each apartment/villa (classification issued as Standard or Deluxe).

  
  

2) Tourism Dirham (the nightly tourism fee)

What it is: A nightly fee payable by guests, remitted by the operator to DET.

How much:

• Standard Holiday Home: AED 10 per occupied bedroom per night

• Deluxe Holiday Home: AED 15 per occupied bedroom per night

• Cap: Charge it for a maximum of 30 consecutive nights per stay.

  
  

Who collects and how:

• You (or your manager) collect it from the guest and remit it via the DET system, typically by the 15th of the following month. Airbnb’s Dubai help page repeats the same rule and rates for hosts.

  
  

3) VAT on holiday homes (5%)

Rate: 5% VAT applies in the UAE.When it applies: Short-term accommodation (e.g., hotel/serviced-style stays) is taxable at 5%, whereas long-term residential leasing is exempt. Holiday-home letting is treated in practice like serviced accommodation when supplied on a short-term, hospitality basis.

Registration thresholds (FTA):

• Mandatory VAT registration when taxable supplies exceed AED 375,000 (rolling 12 months or next 30 days).

• Voluntary registration from AED 187,500.

  
  

Invoices & returns:

• If registered, you charge 5% VAT on the accommodation (separate from Tourism Dirham), issue a proper tax invoice (must show “Tax Invoice” and your TRN), and file VAT returns and pay any net VAT due to the Federal Tax Authority (FTA).

  
  

4) How platforms handle taxes (Airbnb, Booking.com, etc.)

• Tourism Dirham: Platforms do not remit this to DET for you. Hosts/operators are responsible for collecting it from guests and reporting/remitting through the DET Holiday Homes portal (by the 15th).

• VAT on your accommodation price: Even when platforms collect the guest payment, the supply is yours; if you’re VAT-registered you must charge/declare 5% VAT and keep compliant tax invoices/records. (FTA guidance on VAT obligations and invoicing applies.)

• Platform service fees: Platforms may charge their own service/commission fees and add VAT to their fees where applicable (e.g., Airbnb service fees to UAE customers are subject to 5% VAT). This is separate from VAT on your accommodation supply.

  
  

5) Quick compliance checklist

• Licence & permits: Register as an operator and permit each unit; display the permit number in listings.

• Classification: Know your Standard/Deluxe status (sets the Tourism Dirham rate).

• Guest reporting: Use the DET Holiday Homes system for guest check-in/out and monthly Tourism Dirham submissions.

• VAT position: Assess turnover against AED 375,000 / 187,500 thresholds; register if required, charge 5% VAT on short-term stays, issue tax invoices, and file returns on time.

• Keep fees separate on invoices: Show accommodation, Tourism Dirham (as a fee, not a tax), and VAT clearly as separate lines. Airbnb

6) How our management company makes this effortless

• End-to-end compliance: We set up (or regularise) your DET operator account, secure unit permits/classification, and manage guest reporting and Tourism Dirham remittances on schedule.

• VAT done right: We monitor your turnover against FTA thresholds, arrange VAT registration when needed, and issue compliant tax invoices. Ensure that filings are punctual and accurate.

• Transparent guest pricing: We configure listings so Tourism Dirham and VAT are displayed correctly, avoiding guest confusion and audit issues.

• Owner peace of mind: You get clean monthly statements showing gross bookings, Tourism Dirham collected/remitted, VAT charged/paid, platform fees and your net payout—with documents ready for accounting and audit.