VAT inclusive prices on restaurant menus in the UAE

If your restaurant or café in the UAE is registered for VAT, the prices on your menu should already include VAT. Federal Decree-Law No. 8 of 2017 on Value Added Tax says the advertised price of a taxable supply shall include the tax, and the Federal Tax Authority’s own guide names food menus as one of the places this applies. The exceptions are narrow and rarely fit a diner ordering at a table.

This guide explains where that rule comes from, how it interacts with the Consumer Protection Law, and how to set out prices on printed and digital menus in Dubai so they stay consistent. It reflects the legislation as published as of September 2026 and is not tax or legal advice.

What UAE VAT law says about menu prices

The rule sits in two places. Article 38 of Federal Decree-Law No. 8 of 2017, titled Tax Inclusive Prices, states that for taxable supplies the advertised price shall include the tax, and that the cases where prices do not include tax are set by the Executive Regulation. Article 27 of that Executive Regulation, Cabinet Decision No. 52 of 2017 as amended, repeats that published prices for a taxable supply shall be inclusive of tax.

The Federal Tax Authority’s awareness guide for new registrants turns this into a plain instruction: a registrant must make sure prices of goods and services advertised to consumers include VAT, and it gives food menus, catalogues and price tags as examples. For a restaurant, that covers the dine in menu, the table tent with today’s specials, the drinks list, the menu board over the counter and the PDF behind your QR code.

The standard rate itself is set in Article 3 of the Decree-Law at 5%. Menus should not need to mention the rate at all if prices are simply inclusive.

The exceptions, and why they rarely fit a restaurant

Article 27 of the Executive Regulation lists when a taxable person may, or must, declare prices exclusive of tax.

A public menu is offered to anyone who walks in, most of whom are not registrants buying for a business. That is why the inclusive rule is the working default for menus. If you run corporate catering alongside a restaurant, keep two clearly separate documents: an inclusive public menu, and business quotes labelled as exclusive of VAT where your adviser confirms the exception applies.

Working out the VAT inside a menu price

Menu prices and VAT in the UAE both need this next step. Once prices are inclusive, your finance team still needs the tax portion for returns. The FTA guide gives the method: the VAT included in a transaction is calculated by dividing the VAT inclusive price by 21. That works because 5% on top of a net price means the tax is one twenty first of the total.

This matters for menu design in one practical way. Many venues like tidy price endings. If you calculate net prices first and add VAT, you get awkward decimals on the menu. It is usually cleaner to decide the inclusive price guests will see, then let the system work backwards to the net figure and the tax. Agree which approach you use before the designer receives the price list, so the numbers on the menu are final and do not change after typesetting.

• Decide inclusive prices first, then derive net and tax amounts in your accounts
• Round consistently: whole numbers or a fixed number of decimals across the whole menu
• Apply the same rounding in the point of sale system so receipts match the menu

Service charges, extras and the Consumer Protection Law

Menu prices and VAT in the UAE are only half the picture. Federal Law No. 15 of 2020 on Consumer Protection applies to all goods and services in the UAE, including free zones, under Article 3. Article 8 requires the supplier to place the price clearly when offering a good for sale, and says the declaration of prices shall not be misleading. Article 1 defines a misleading advertisement as one based on deceptive information or that omits essential information, and Article 17 prohibits describing a good or service with incorrect data.

For a menu, that points to a simple principle: the guest should be able to work out what the bill will be from what the menu says. If any charge is added on top of the printed dish price, whether a service charge, a cover charge, a minimum spend or a supplement for an outdoor table, state it clearly on the menu in both languages, near the prices rather than hidden in small type on the back. Whether a particular charge is permitted, and how it is taxed, is a question for your licensing authority and tax adviser; the design job is to make sure nothing on the bill surprises the guest.

If a guest cannot predict the bill from the menu, the menu is not doing its job, legally or commercially.

Wording and layout for the price line in Arabic and English

Article 26 of the Consumer Protection Law states that data and advertisements related to the consumer shall be in Arabic, with other languages allowed in addition, and Article 8 requires the consumer invoice to be in Arabic too. On a bilingual menu, the price statement needs the same care as dish names.

• One clear statement, such as “All prices are in UAE dirhams and include VAT”, with an approved Arabic equivalent directly beside or above it
• Place it where the eye lands on the first price page, not only on the back cover
• Use the same currency wording and position in both languages throughout
• Pick one digit style for Arabic prices and use it everywhere, including on the receipt
• Remove legacy notations such as a plus plus sign or “subject to” lines left from older menus
• If you print a service charge note, give it the same type size as the VAT statement

Check the Arabic wording with a native reader and your accountant together. A translated phrase that reads as “prices before tax” by mistake undoes the whole exercise.

Keeping printed menus, QR menus and delivery apps in step

Menu prices and VAT rules in the UAE apply everywhere a guest looks: on a printed card, a QR menu, a delivery platform and a receipt, sometimes within the same week. The VAT inclusive rule applies to advertised prices wherever they appear, and a mismatch between channels is exactly the kind of thing that turns a small complaint into a formal one.

Delivery leaflets have their own considerations, covered on our takeout menu design page, and if you sell online as well, our guide to UAE VAT tax invoice requirements for online stores covers the invoice side.

Menu price change checklist

1. Finance confirms the final VAT inclusive price for every changed item.
2. Any additional charge is confirmed as permitted and written in both languages.
3. The point of sale system is updated and a test receipt is checked against the new list.
4. The designer updates the master file and adds a new version code and date.
5. Someone other than the designer checks every price on the proof against the approved list.
6. QR menu and delivery listings are updated on the same day as the printed menus go out.
7. Old printed menus, table tents and counter cards are collected and destroyed.

How Digital Marketing Dubai can help

We keep menu prices and VAT rules in the UAE easy to follow: clear VAT statements in Arabic and English, space reserved for any charge notes, and a master file built so price updates do not mean a new design. See restaurant menu design for dine in menus, placemat design for paper table pieces, and the print design hub for everything else. Before your next reprint, our print ready file checklist helps the files reach the printer correctly. Send your current menu and price list and we will reply with a written fixed price proposal within 45 minutes during business hours.