Some restaurants serving lower-income groups are exempt from VAT
Ministry of Finance issued a directive exempting some restaurants serving lower-income groups from the VAT on food items. All franchises of international or domestic restaurants, restaurants in shopping malls, tourist areas, airports, and gated residential compounds will have to continue collecting the VAT. Also, not exempted are restaurants serving food made from wheat or dough-based pastries, as well as restaurants that charge extra service charges. Businesses with a turnover of less than EGP500k p.a. remain exempt from VAT, according to an announcement by the Ministry of Finance.
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