Get ready to pay 5% VAT on restaurant bills in UAE

The new tax will be imposed on dining out on all kinds of eateries including fast food outlets, Asian, Continental, Arabic and Chinese.

Dining out with family and friends is set to become more expensive from next week due to the implementation of value-added tax (VAT) in the UAE.

As part of the GCC agreement, the UAE will impose five per cent VAT on dining out from January 1, 2018.

The new tax will be imposed on dining out on all kinds of eateries including fast food outlets, Asian, Continental, Arabic, Chinese, and other restaurants.

According to KPMG's recent report, UAE residents spend on average between Dh50 and Dh150 per person on dining out.  The study revealed that 24 per cent of residents eat out lunch eight times a month and 23 per cent have dinner at restaurants. Around 94 per cent of UAE residents, according to a survey of 800, like to try new restaurants and/or new cuisines.

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