Food and drink for human consumption are often zero rated when supplied by a retailer. But food and drink are usually standard rated for VAT when provided as part of a catering service. Meals and drinks served hot or consumed in a cafe or restaurant are often standard rated.
Do you pay VAT on food and drink?
Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.
What is the VAT on food and drink?
VAT on food and non-alcoholic drinks: 5% rate
A 5% rate of VAT applies to supplies of: Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs. Hot takeaway food and hot takeaway non-alcoholic beverages.
What food items are exempt from VAT?
You can zero rate all supplies of unprocessed foodstuffs such as:
- raw meat and fish.
- vegetables and fruit.
- cereals, nuts and pulses.
- culinary herbs.
Is Food zero rated for VAT?
Although food and drink is often zero-rated for VAT, there are many exceptions where the standard rate applies instead. These include: catering and hot food (including hot takeaways) snacks such as crisps, confectionery and ice cream.
What Vat do you pay on food?
If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you’re currently required to charge VAT at the standard rate of 20%. However, when you make these supplies between 15 July 2020 and 12 January 2021 you will only need to charge 5%.
Do you pay VAT on takeaway hot food?
In a nutshell restaurants must always charge VAT on everything except food that is cold and taken away, takeaway vendors do not need to charge VAT unless the food is hot and/or the customer would like to eat in perhaps a designated sitting area.
What percentage is VAT?
The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT , such as postage stamps, financial and property transactions. The VAT rate businesses charge depends on their goods and services.
Do restaurants pay VAT?
Most food is VAT-free but you do pay VAT on some food. … This will apply to all food and non-alcoholic drinks from restaurants, pubs, bars, cafés and other similar businesses across the UK.
Does drink have VAT?
Alcohol duties are included in the price you pay for beer, cider or perry, wine or ‘made-wine’, and spirits. … You also pay standard rate VAT at 20% on alcohol and tobacco products.
What items do you pay VAT on?
Things that VAT is charged on are known as ‘taxable supplies’ and include:
- Basic selling of goods and services.
- Money made from selling business assets.
- Things sold to staff eg. …
- Loaning or hiring items to someone.
- Personal usage of business items.
- Gifts, bartering, part-exchange and other ‘non-sales’ transactions.
Is client entertaining VAT exempt?
An employee has to be someone who is on your business’s payroll and being paid a salary. If you’re entertaining anyone else, that counts as business entertainment rather than employee entertainment, and you can’t claim either tax relief or VAT on the cost of entertaining them.
Does coffee have VAT?
A visual guide to VAT on food and drinks for cafes, restaurants, bakeries, caterers and other hospitality businesses. This guide is for small business owners of UK cafes, restaurants, bakeries and caterers. … You charge VAT at 0% on zero rated products. For example, the sale of coffee beans is zero rated.
Do you pay VAT on toilet roll?
Value Added Tax is currently charged by HM Treasury on the sale of toilet rolls at the rate of 20%.
Are books VAT exempt or zero-rated?
Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. The goods covered by this classification are items such as children’s clothes and footwear, water, basic foods, books and newspapers.
What is the current VAT rate 2020?
This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 to 31 March 2021.