VAT on delivery-app sales: what UAE restaurants should record

The problem with net payouts

A delivery platform collects the full amount from the customer, deducts its commission and fees, and pays you the balance. If your bookkeeper records only the amount that reaches your bank, your revenue is understated, your output VAT is understated, and the VAT you paid on the commission is never claimed.

The fix is to record the settlement in its parts, from the platform's settlement statement, not from the bank line.

Record each settlement in three parts

• Gross sales to customers, with output VAT at 5%
• Platform commission and fees as an expense, with input VAT where the platform issues a valid tax invoice
• Net amount received, matched to the bank deposit

Read the platform agreement first

Platforms do not all work the same way. Under some agreements the restaurant is the supplier of the food to the customer; under others, parts of the order, such as delivery fees, are supplied by the platform. Who supplies what decides who accounts for which VAT. We read the agreement before setting up the entries, and repeat the check when the platform changes its terms.

Discounts and promotions

Platform-funded discounts and restaurant-funded discounts are treated differently. If you fund the discount, your consideration is lower. If the platform funds it, you may still be paid on the full price. The settlement statement usually shows which is which.

A monthly routine

• Download every platform's settlement statement for the month
• Agree the gross sales to your POS delivery report
• Book gross sales, commission and net receipt separately
• Keep the platform's tax invoices for commission
• Match each payout to the bank