IRD warns restaurants to issue stamped receipts and remit commercial tax

The Internal Revenue Department (IRD) issued a notice on 8 October reminding restaurant owners to strictly issue tax stamped receipts to customers and remit the collected commercial tax to relevant tax offices on a monthly basis, as some business owners have been failing it.

It referred to Section 40 (a) (3) of the Commercial Tax Regulations. The notice stated that despite improvements in compliance, audits revealed that some operators are still exhibiting weak compliance.

Therefore, consumers are urged to request receipts bearing tax stamps when paying their bills at restaurants.

Restaurant operators who fail to issue receipts with tax stamps are being fined according to Section 40 (a) of the Union Tax Law. Furthermore, 30% of the collected fine is awarded as a reward to informers, and the identity of informers will be kept confidential.

To avoid penalties, the IRD urges restaurant owners to comply by collecting commercial tax directly from consumers, issuing tax stamped receipts, and regularly remitting the collected taxes to the respective tax offices every month.

TWA/ZN