Restaurant Corporate Tax Registration Dubai

Yes. The FTA applies the standard 5% VAT rate to all restaurant revenue — dine-in meals, takeaway, delivery, catering, and beverages. There is no reduced food rate in the UAE. Service charges retained by the business are also taxable, while tips passed entirely to staff are not subject to VAT.

The rate is 0% on net profit up to AED 375,000 and 9% on net profit above that level. Restaurants with annual revenue under AED 3 million may elect Small Business Relief, which treats taxable income as zero for that period. Relief is available until 31 December 2026 and must be actively elected on each corporate tax return.

Most restaurants file quarterly. The FTA assigns your tax period on your VAT certificate, and returns are due within 28 days of the period end via EmaraTax. A restaurant whose quarter ends 31 March must file and pay by 28 April. Monthly filing is assigned to higher-turnover businesses at FTA discretion. Late filing attracts an AED 1,000 penalty for the first offence.

A first late filing attracts an AED 1,000 penalty, rising to AED 2,000 for each repeat offence within 24 months. Late payment of VAT due adds a 2% monthly surcharge on the unpaid amount. FTA can also suspend your tax registration, blocking future input-tax recovery until arrears and fines are cleared.

Yes. Input VAT paid on fit-out, kitchen equipment, furniture, and renovation is fully recoverable against output VAT collected on sales, provided you are VAT-registered and hold valid tax invoices from suppliers. This is one of the strongest financial reasons to register voluntarily at the AED 187,500 threshold rather than waiting until AED 375,000.

Yes, in most cases. The FTA treats free staff meals as a deemed supply if input VAT was claimed on the ingredients. The business must account for output VAT on the cost value of those meals. An exception applies when the meals are a contractual employment benefit, but this is narrowly interpreted -- we advise each client on their specific situation.

The FTA is phasing in mandatory Peppol-based e-invoicing for all VAT-registered businesses. Large taxpayers must comply from 1 January 2027 and all other VAT-registered businesses, including restaurants, from 1 July 2027. Non-compliance carries AED 5,000 per month plus AED 100 per non-compliant invoice. We prepare clients ahead of their deadline.

A restaurant with annual revenue under AED 3 million may elect Small Business Relief, which treats taxable income as zero for that tax period. However, the business must still register for corporate tax on EmaraTax and actively elect the relief on each annual return. Relief is available for periods ending on or before 31 December 2026 and is not automatic.

The commission charged by a delivery platform to your restaurant is a taxable service -- the platform issues a VAT invoice which you reclaim as input tax. Your restaurant's food sale to the end customer remains taxable at 5% on the full menu price regardless of the channel. We reconcile both sides each quarter to avoid double-counting or missed input claims.

The FTA can audit any period within the past five years. You must retain all tax invoices issued and received, daily POS reports, bank statements, delivery-platform settlement statements, payroll records, and import or customs documents. Records must be in Arabic or English and must be produced within the timeframe the FTA specifies -- typically five business days.

A UAE restaurant group registers as one VAT-registered person and files a single consolidated return covering all outlets under the same legal entity. If outlets trade under separate legal entities -- for example, separate LLCs per brand -- each entity registers and files independently. We structure your VAT registration to match your legal ownership to avoid misreporting across branches.