• Sep 22, 26
• dawnuser
• UAE Business & Economy
• 0 comment

Dubai has introduced two economic support packages for businesses this year in response to the fall in visitor demand following regional flight disruption. For hotels, restaurants, holiday home operators, event organisers and nurseries, the measures are material, but they also create accounting and invoicing questions that are easy to get wrong.

Two packages, two different types of relief

The AED 1 billion package, effective from 1 April 2026, allowed hospitality establishments to defer hotel sales fees on rooms and food and beverage, and the Tourism Dirham, for three months. It also deferred a range of business licensing fees, including premium trade name, licence amendment and newspaper announcement fees.

The larger AED 1.5 billion package, approved on 21 May 2026, went further with exemptions rather than deferrals. It comprises 33 initiatives across tourism, trade and logistics, real estate, construction, education and culture, rolled out over three to twelve months. Measures announced include:

• exemption from collecting the Tourism Dirham and sales fees on hotel rooms and restaurants
• exemption from permit and licence fees for holiday homes
• exemption from event permit fees and postponement or cancellation fees for events, exhibitions and conferences
• reduced fees for tour guides and desert safari activities, and deferral of e-link and hotel classification fees
• for KHDA-registered early childhood centres, exemption from licence renewal fees, existing fines and Dubai Municipality fees, with partial rent relief

Why the difference between deferral and exemption matters

A deferred fee is still owed. It should remain in your books as a liability until it is paid, and your cash flow forecast should reflect when it falls due. An exempted fee is not charged at all. Treating a deferral as a waiver, or continuing to collect a fee from customers that you are exempt from collecting, creates problems in your accounts and with your customers.

Five things to check in your business

1. Invoices and point-of-sale settings. Make sure guest bills and receipts show only the charges that actually apply for each period.
2. Effective dates. Record exactly when each exemption or deferral started and ends for your establishment, and keep the supporting confirmation.
3. Deferred balances. Keep deferred fees recorded as liabilities and schedule their payment.
4. VAT returns. Check that the amounts reported reflect what was actually charged to customers in each period.
5. Reconciliations. Reconcile fees collected against fees remitted so any over- or under-collection is identified early.

Eligibility and dates vary by measure and by type of establishment. Confirm the position for your business with the Dubai Department of Economy and Tourism or the relevant authority.

How Dawn Consultancy can help

We support hospitality, tourism and education businesses with bookkeeping, VAT compliance and licensing. See our hotel and tourism, school and nursery and accounting and bookkeeping services.

Want your fee treatment and VAT reviewed? Call +971 55 441 1036, email info@dawnconsultancy.com or contact us.

Source: Dubai Media Office, 21 May 2026, and reporting by The National.

This article is for general information and reflects announcements available at the date of publication. It is not tax or legal advice. Confirm the position for your business before acting.