Sector Impact > F&B

The F&B sectors includes a combination of goods and services which may fall under different tax rates depending on the nature of the items.

  • Imports will attract VAT under the Reverse Charge Mechanism unless certain ingredients are exempt from VAT. Essential and staple food items is expected to be exempt from VAT.
  • Outsourced manpower, which is quite common in this sector, will be subject to VAT but can be claimed as Input tax credit.
  • Sales
    • All sales will be charged at the standard 5% rate including any service fee or delivery charge.

The final impact of VAT on F&B as revealed by the government will be as follows:

Impact on F&B VAT Rate
Food and Bevarages 5%

Sector VAT News Update

Watch this space for updates

Sector impact analysis is provisional based on the GCC Draft and may change when the country issues the relevant VAT laws.