Yes, meals and drinks attract VAT
Aug 09, 2008
Reference is made to the letter by Barry Sesnan entitled “URA, are restaurant meals and drinks subject to VAT?†published in the New Vision of August 5.
Reference is made to the letter by Barry Sesnan entitled “URA, are restaurant meals and drinks subject to VAT?†published in the New Vision of August 5.
The VAT Act provides that a good or service is taxable for VAT purposes if it is not an exempt good or service and is made by a taxable person (registered for VAT purposes) as part of his or her business activities.
VAT therefore must be charged and collected on meals and drinks provided by all VAT-registered restaurant operators. As a requirement, a VAT registered person must at all times display a VAT certificate at his or her premises.
Paul kyeyune
Ag. Assistant Commissioner
Public and Corporate Affairs
Uganda Revenue Authority
The VAT Act provides that a good or service is taxable for VAT purposes if it is not an exempt good or service and is made by a taxable person (registered for VAT purposes) as part of his or her business activities.
VAT therefore must be charged and collected on meals and drinks provided by all VAT-registered restaurant operators. As a requirement, a VAT registered person must at all times display a VAT certificate at his or her premises.
Paul kyeyune
Ag. Assistant Commissioner
Public and Corporate Affairs
Uganda Revenue Authority