4% tax for restaurants in tourist locations

Hotels, restaurants and cafes located in tourist areas and managed through franchise contracts will collect 4 per cent tax from customers from next year.

“Based on a ministerial decision, the tax will be collected starting on January 1, 2020,” the ministry of tourism said in a statement.

The restaurants will deposit the money to the ministry on a quarterly basis in accordance with the rules stipulated in the decision, it said.

In case of a delay, fines will be imposed in accordance with Article Seven of the same decision.

“The classification criteria restaurants can be found on website,” the ministry said.

It may be noted that Article 3 for its of the decision 56/2019 said that restaurants and cafes catering to tourists shall hire a manager for daily management as per the qualifications determined by the ministry.

The restaurants and cafes can seek for classification from the Ministry of Tourism by paying a licence fee of RO 200.

Article 49 of the decision states that restaurants and cafes can apply for the ministry for tourism classification if they are situated within a hotel establishment or if they are located on a land meant for tourism purposes or if they are administered through franchise contracts.

This decision will come into force from the day following the publication in the Official Gazette after 90 days from the date of enforcement of this resolution.