2026-04-14·
6 min
VAT for Restaurants & Cafes in Saudi Arabia: Complete Guide 2026
VAT
Restaurants
ZATCA
15% VAT applies to most restaurant and cafe services in Saudi Arabia. Understanding how to apply, calculate, and issue compliant invoices protects you from penalties and builds customer trust.
Is My Restaurant Required to Register for VAT?
Yes, if your annual revenue exceeds SAR 375,000 registration is mandatory. Between SAR 187,500–375,000 registration is optional. Below SAR 187,500 is exempt.
Which Restaurant Services Are Subject to VAT?
- Food and beverages (dine-in or takeaway)
- Delivery services
- Event and banquet bookings
- Retail product sales (baked goods, packaged items)
How POS SAAS Helps Restaurants
POS SAAS automatically calculates VAT on every order, issues ZATCA-compliant invoices, and reports them in real-time — with no manual effort from your staff.