Whether Restaurant Tip received considered as Out-of-Scope for VAT purposes in UAE?
Please confirm, whether Restaurant Tip received is considered as Out-of-Scope for VAT purposes in UAE. The taxpayer will receive those Tips amount in both Cash and via Card directly to his bank.
There is no specific guidance on this matter with respect to UAE VAT. However you may refer the KSA VAT guidance on discretionary tips to understand the possible VAT treatment - https://zatca.gov.sa/en/HelpCenter/guidelines/Documents/Recreation%20and%20Entertainment.pdf0 Like
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