VAT to Increase Restaurant Costs in the UAE
With a view of giving birth to a new source of income, the United Arab Emirates (UAE) has taken a decision to implement VAT with a rate of 5%, that saw the light of day on 1st Jan 2018. Although, this initiative is taken with the aim of boosting the Emirates economy, the same has turned itself as one of the biggest challenges for business owners who deal with the restaurant business. If you are a business investor or an entrepreneur who wants to set up a restaurant business in UAE, you need to be aware of certain essentials. Do read below to know what VAT is all about and its impact of VAT on restaurants.
What Is VAT?
VAT refers to Value Added Tax, which is a consumption tax that needs to be borne at every step of consuming a product or service. It is an indirect form of tax and is levied on more than 180 countries. To join the twine, the UAE also came forward to implement the same in the daily business transactions revolving in the Emirati economy.
VAT in UAE | 2018
UAE VAT Law has been passed that mandates the business entities to implement VAT charges on the goods or services delivered. The main idea behind the implementation of VAT is to increase the number of sources of revenue flow, bring a stable position for SME’s, and to make every dirham count.
