Restaurant Accounting in Dubai: What the Books Need (2026)
A restaurant in Dubai needs books that track daily sales by channel, purchases and stock, payroll and staff gratuity, fixed assets, VAT and corporate tax, and it must keep them for years: VAT records for at least five years and corporate tax records for at least seven after the end of the relevant tax period (Federal Tax Authority). Most working restaurants also cross the AED 375,000 VAT registration threshold in their first year, and corporate tax applies at 9% on taxable income above AED 375,000.
This guide covers what restaurant accounting in Dubai has to include, where restaurants most often get it wrong, and what to do in-house versus with an accountant.
Note: General guidance, not tax advice. Confirm your obligations with the Federal Tax Authority or a registered tax agent.
What Must Restaurant Accounting Cover?
| Area | What to record | How often |
|---|---|---|
| Sales | POS sales split by dine-in, takeaway and each delivery app; cash-ups | Daily |
| Banking | Card settlements, cash deposits, app payouts matched to sales | Weekly |
| Purchases and stock | Supplier invoices; stock counts to calculate food cost | Monthly (stock counts at least) |
| Payroll | Salaries paid, visa and insurance costs, gratuity provision | Monthly |
| Fixed assets | Fit-out and equipment, depreciated over their useful life | Monthly |
| VAT | Output VAT on sales, input VAT on purchases, return filed | Each tax period |
| Corporate tax | Registration, annual return | Annually |
Which Taxes Apply to a Restaurant?
VAT
VAT is 5%, and menu prices must already include it. Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the previous 12 months or are expected to in the next 30 days, and voluntary above AED 187,500 (FTA). For service charges, tips and the municipality fee, see VAT, service charge and fees on Dubai restaurant bills.
Corporate tax
UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above it (UAE Government portal).
Small Business Relief lets a resident business with revenue of AED 3 million or less in the current and all previous tax periods be treated as having no taxable income for that period. It must be elected for each tax period, and it is not available to qualifying free zone persons or members of large multinational groups (FTA). On 7 August 2026 the Ministry of Finance announced it has been extended to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131; Ministry of Finance).
Relief does not remove the obligation to register and file. A restaurant turning over AED 2.5 million still needs its records in order.
Where Do Restaurant Books Usually Go Wrong?
Delivery-app sales booked net
The most common error. An app pays you the order value minus commission, any promotion you funded, and VAT on its commission. Booking only the payout as revenue:
- understates your sales, and so your VAT position is hard to reconcile
- hides the real cost of the channel, which typically runs 25–35% of each order
- makes food cost and staff cost look higher than they are
Record the gross sale, then the commission, promotions and VAT on commission as separate lines. Our guide to Talabat's commission covers what those deductions do to margin.
Revenue booked including VAT
Menu prices include 5% VAT that belongs to the FTA. Revenue should be net of VAT (÷ 1.05). Getting this wrong flatters every ratio; see food cost percentage for UAE restaurants.
No gratuity provision
Under UAE labour law, staff with a year or more of service earn 21 days of basic wage per year for the first five years and 30 days per year after, on basic salary, capped at two years' wages (UAE Government portal). Provide for it monthly, roughly 5.75% of annual basic salary in the first five years, so a long-serving team does not produce a surprise loss when someone leaves.
Food cost from purchases
Food cost is opening stock plus purchases minus closing stock. Without stock counts, a month of stocking up looks like a margin collapse.
Annual costs booked in one month
Trade licence and food permit renewals, insurance and fit-out cover a year or more. Spread them.
What Should a Month-End Close Include?
A short routine, done within the first two weeks of each month, keeps the books usable:
- Reconcile every bank account to the statement, including the account delivery apps pay into.
- Match app payouts to gross app sales, commission, promotions and VAT on commission.
- Count stock and calculate food cost on sales net of VAT.
- Post payroll with visa, insurance and accommodation costs, and the month's gratuity provision.
- Accrue annual costs: one-twelfth of the trade licence, food permit renewal and insurance, plus depreciation.
- Review the P&L against last month and the same month last year, and note any line that moved more than two points.
Owners who can produce clean monthly accounts also find it far easier to raise finance, negotiate with a landlord, or sell the business later. Buyers price a restaurant on earnings they can verify; see buying a restaurant in Dubai.
What Should Be Done In-House, and What by an Accountant?
In-house, every day or week:
- Cash-ups and POS end-of-day reports
- Matching card settlements and app payouts to sales
- Filing supplier invoices
- Stock counts, at least monthly
Usually with a qualified accountant or registered tax agent:
- VAT returns and input tax recovery
- Corporate tax registration, the Small Business Relief election and annual returns
- Gratuity provision and payroll records
- Monthly management accounts and year-end financial statements
Whichever way you split it, the owner should read a monthly P&L within two weeks of month end. Our line-by-line UAE restaurant P&L shows what it should contain, and is a restaurant business profitable in Dubai shows the ranges to compare against. For corporate tax across service businesses generally, see UAE corporate tax for service businesses.