Hotel stay will be 25-30% more expensive

Hotels and furnished apartments will have to pay more on room tariff by way of the newly-introduced municipal tax on top of Value-Added Tax (VAT) and the already existing service tax.

A guest will have to pay approximately 25% to 30% extra on their room tariff.

This will be in addition to food and beverages and other taxable facilities in the hotel.

The Ministry of Municipal and Rural Affairs has imposed a flat levy of 5% on each room occupied in hotels and furnished apartments across the Kingdom.

The levy for rooms in three-star hotels and downwards will be 2.5 %.

This is on top of 5% VAT which is collected by the General Authority of Zakat and Tax (GZAT).

Source: Saudi Gazette