Sector Impact > Tourism


Tourism is a very important sectors for economies diversifying from Oil & Gas revenue in the region and may have to revise pricing strategies to reflect the impact of VAT.

Tourism services such as ticketing, hotel reservations, tours will require to charge VAT depending on where the services are being rendered.

Tourism services sold to in-bound tourists may attract VAT, however, services for out-bound tourism may be under the zero tax category. For example, overseas Hotel Rates may not attract VAT but a service component may be charged separately and attract VAT (detailed regulations awaited)

Tourists who purchase goods such as electronics, consumer appliances, textiles and other goods will be charged VAT, however it is not yet clear whether they will be able to claim a VAT refund as available in other countries. As per the VAT FAQs released by MOF-UAE

Medical tourism may not attract VAT as the health-care segment will be under the Zero category.

Sector VAT News Update

Sector impact analysis is provisional based on the GCC Draft and may change when the country issues the relevant VAT laws.