VAT increase kills Ukrainian food restaurant

By:

ELTA 2024-11-15 10:05:19 Comments: 0

The Ukrainian cuisine restaurant „Borsch“ is for sale in Naujamiestis, Vilnius, reports portal „Verslo žinios“. The 260 sqm premises are for sale, along with all the property and the necessary permits for operation.

VAT rate for catering establishments, which has been reintroduced this year, which has led to a significant increase in costs.

„But we didn't raise the prices too much because we understand that a person is not going to come and eat a daily lunch for €15 when it already costs €8–9. (...) When you look at the cost of a person's work, the cost of electricity, gas, other services, – everything has become more expensive“, – said G. Šablo.

„Ukrainian Specialties“ was established in January 2010. When Russia attacked Ukraine in 2022, it was one of the businesses that saw a surge in customers to support Ukraine.

According to the Centre of Registers, the restaurant generated revenues of €778.7 thousand and profits of €7.9 thousand in 2023. The restaurant was not loss-making in 2022 either, when it recorded revenues of €840.1 thousand and profits of €3.5 thousand.

The company owes an overdue amount of EUR 3.6 thousand to the national tax office. The company does not have any debts to "Sodra".