Refund of 50% of tourist fees paid by hotels

We understand that Dubai municipality has announced that it will refund 50% of tourist fees paid by hotels, given this situation. Is there any vat implication of this for hotels? Thanks

Sana

25/09/2020 16:07:17

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SAJITH N25/09/2020 16:36:29

This would merely take the form of a Government assistance/subsidy/relief and there is no supply involved in this as it is a form of compensatory assistance for loss of earnings. So I should not be subject to VAT in my view.

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Refund of 50% of tourist fees paid by hotels

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