VAT on Restaurant set up

We are setting up a restaurant and it will be managed by a third party. Our question is :

1. Who is liable for VAT registration here?

2. In whose name the invoice should be issued as a supplier.

 

Replies
SAJITH N16/06/2020 23:13:53

It would depend on the contractual arrangement between you and the third party ie whether you are leasing out the restaurant or they are just managing on your behalf in return for management fee etc. It is necessary to identify who the supplier is for services rendered in the restaurant.

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Shardul 17/06/2020 15:59:02

Dear Sajith, third party will be managing it for us and we intend to pay them management fees for their services.

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SAJITH N17/06/2020 21:03:11

Then they would be regarded as agents acting on your behalf. So the taxable supplies made from restaurant will be considered as rendered from your end and taxable supply of the management entity would be the fee they would charge you.

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