VAT
VAT for Restaurants & Hospitality Businesses
Tipping, service charge, packaged deals — how VAT applies in F&B.
Standard-rated supply
All F&B sales are 15% VAT-standard-rated. Menu prices should be VAT-inclusive.
Service charge
Compulsory service charges form part of the taxable supply. Voluntary tips do not.
Packaged deals
For all-inclusive packages, apportion between VAT-standard and any zero-rated components (e.g. certain transport).
Point-of-sale
Approved POS with fiscal-memory features is required. Non-compliance penalties bite hard.
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