VAT on take-away food and drink - What are the rules?

5 years, 7 months ago by Oliver Atkinson

VAT on take-away food and drink - What are the rules?

VAT on take-away food and drink - What are the rules?

Food supplied in the course of catering

You must always standard-rate food supplied in the course of catering, including hot take-away food.

Food not supplied in the course of catering

Although the supply of most food and drink of a kind used for human consumption is zero-rated, there are exceptions. Some items are always standard rated and these are explained in Notice 701/14 Food (see HMRC website). Other supplies are standard rated because they are made in the course of catering.

What is the liability of take-away food and drink?

Hot take-away food that has been heated for the purposes of supplying it hot is always standard-rated. Cold take-away food and drink is zero-rated, provided it is not of a type that is always standard-rated (such as crisps, sweets, beverages and bottled water).Hot drinks are standard rated.

What does ‘hot’ mean?

Hot in this context means above the surrounding air temperature.

Examples of standard-rated sales when sold hot are:

• baked potatoes with a hot or cold filling
• hot dogs and hamburgers
• pies, rolls, sausage rolls, pasties and similar
• items toasted sandwiches
• cups of tea, coffee, chocolate and other hot drinks
• cups of soup