Can you claim VAT on hotel staysin the UAE?

Last reviewed 27 Oct 2026

Recoverable for staff on business trips in the UAE. Blocked when you're putting up a client.

When you can claim the VATand when it's blocked

VAT on UAE hotel stays for employees traveling on business is recoverable, including meals they buy for their own subsistence during the trip.
Municipality fees and the Tourism Dirham are local levies, not VAT.
Hotels abroad charge local taxes you can't claim on a UAE return.

Stays for clients, prospects, or as rewards, and off-sites that are mainly leisure, are entertainment and blocked.

Recoverable
Two nights in Abu Dhabi for a client meeting
Hotel stays for employees traveling on business aren't entertainment, so the 5% is recoverable. The Tourism Dirham and municipality fees on the bill are local levies, not VAT, so leave them out of the claim.
Blocked
Hotel for a visiting client
Blocked, 50% deductible.
Paying for a client's stay is entertainment, so the VAT is blocked. For corporate tax, 50% of the cost is deductible.
No VAT to recover
Hotel in London
No UAE VAT to claim.
The hotel charges UK VAT, which can't go on a UAE return. The full bill is still a business cost for corporate tax.

Tax invoice showing hotel TRN and VAT; ask for the company name and TRN on it where possible. A guest folio alone may not be enough.

Depends. Business travel is deductible. Client stays are entertainment and 50% deductible.

GL account: Travel: accommodation

Treating the Tourism Dirham as VAT. Claiming VAT on a stay booked for a client.

Are the Tourism Dirham and municipality fees VAT?

No, they're local levies. Leave them out of the VAT claim.

Can I claim VAT on meals during a hotel stay?

Yes, for meals an employee buys for their own subsistence during a business trip.

Is a team off-site recoverable?

Not if it's mainly leisure. Off-sites like that count as entertainment, so the VAT is blocked.