Abu Dhabi Tourism Fee: What you need to know
The Department of Culture and Tourism proposed a significant reduction in government-imposed taxes on hotels and restaurants starting September 1, 2023, to boost the hospitality and tourism sector in Abu Dhabi. As a tourist, you can expect to pay various taxes in the UAE capital, and this guide will explain them to you. Additionally, you will learn about Abu Dhabi Tourism fee, tax refunds and the tourism tax reforms available to tourists in 2024.
Abu Dhabi Tourism Fee and Hotel Taxes
While Dubai attracts the most tourists for its grandeur and extravagance, Abu Dhabi offers an alluring mix of culture, heritage, technology and attractions to reel in visitors from around the world. When booking hotels on your visit to Abu Dhabi, you are likely being quoted the gross price for the hotel room, exclusive of taxes. So, what are the exact hotel charges for tourists?
These are the extra costs that your hotel or travel agent may not include in the quoted price:
- Tourism Fee: 4%
- Municipality Fee: 4%
- Property Service Charges: 10%
- Value Added Tax (VAT): 5% (this is already added to the hotel room price)
Keeping these figures in mind, the net amount of booking a hotel room will increase by 18 to 20%. These are the revised figures after The Department of Culture and Tourism announced the decision to cut tourism and municipality fees. The tourism fee was lowered to 4% (previously 6%), while the Tourism Dirham Fee Abu Dhabi of AED 15 per room was scrapped entirely.
Restaurant Charges for Tourists in Abu Dhabi
The Abu Dhabi Government has removed the 6% Abu Dhabi tourism tax and 4% municipality fee on hotel restaurants. Even though tips aren’t mandatory, many customers pay around 10% to 20% of the total bill as a tip if they are happy with the overall service. Please note food outlets in Abu Dhabi malls also charge 5% VAT.
Now that you know there are no hidden charges on the food you order try these top restaurants in Abu Dhabi!
Alcohol Charges in Abu Dhabi
If you’re 21 or older, you can legally buy and consume alcohol without needing a special licence. However, there are a few conditions you must meet. Remember that there’s a 30% tax on all alcohol purchases.
Events Tourism Tax
In recent news, the DCT Abu Dhabi has extended the waiver of fees for issuing, distributing and marketing event tickets in the emirate to further encourage the growth of the tourism sector. Event organisers will be exempt from paying the tourism fee of 10 per cent on tickets sold until 31 December 2024.
Nevertheless, organisers are responsible for declaring the revenues generated from these events, providing supporting financial statements and collaborating with revenue auditors or individuals appointed by DCT Abu Dhabi to verify the accuracy of their declarations.
Excise Tax in Abu Dhabi
UAE introduced a country-wide excise tax in 2017 to discourage the consumption of products that are generally hazardous to human health or the environment. These taxes are imposed indirectly and affect tourists or residents only if they buy the product. Carbonated drinks, energy drinks, electronic smoking devices, and tobacco products are typically eligible for excise tax in the UAE.
Rate of Excise Tax:
- 50% on carbonated drinks
- 100% on tobacco products
- 100% on energy drinks
- 100% on electronic smoking devices
- 100% on liquids used in such devices and tools
- 50% on any product with added sugar or other sweeteners
Abu Dhabi Tax Refund for Tourist Scheme
In collaboration with the Federal Tax Authority (FTA), the UAE government introduced a VAT refund scheme for tourists. Under this scheme, tourists are exempted from VAT and can demand a refund.
To be eligible for a VAT refund, you must meet the following conditions:
- Goods you have bought must be purchased from a retailer who participates in the tax refund scheme.
- Ensure that the products you buy are not excluded from the Federal Tax Authority Refund Scheme.
- You must intend to depart the UAE within 90 days from the date of supply and have the purchased supplies with you.
- Purchased goods must be exported from the United Arab Emirates within 90 days of purchasing.
- The purchase and export of goods must be conducted according to the requirements and procedures set by the Federal Tax Authority.
- You will receive 85% of the total VAT minus a fee of 4.80 dirhams per Tax-Free tag.
- A minimum of AED 250 must be spent on the purchase of goods.
FAQs About Abu Dhabi Tourism Fee
Is it legal to drink alcohol in Abu Dhabi?
Yes, it is legal to drink alcohol in Abu Dhabi as long as you are 21 years old and want to consume alcohol in a private or licensed area.
Is there a corporate tax in the UAE?
The Federal Tax Authority is responsible for implementing and collecting corporate tax payments. The standard rate of corporate tax is 9%. However, businesses earning profits up to AED 375,000 are exempted from the UAE corporate tax.
Is there a time limit for VAT refunds at Abu Dhabi Airport?
Yes, you can only validate your tax-free tags within 90 days of the date you purchased the product. If the 90-day limit lapses, your tax-free tag will expire, and you will no longer remain eligible for a VAT refund.
Are there free things to do in Abu Dhabi?
While several tourist attractions have entry fees and additional fees, there are still several free things to do in Abu Dhabi, including visiting the Sheikh Zayed Grand Mosque, Heritage Village and more.
With this, we end our Abu Dhabi tourist tax guide. If you plan to visit the city with your partner, explore the best romantic hotels in Abu Dhabi. Those travelling on a budget can check out cheap hotels in Abu Dhabi.
If you are looking for accommodation near the airport, check out these hotels near Zayed International Airport.
