News

VAT Reduced Rate

Many restaurants and cafes have opened as a takeaway due to the impact of Coronavirus.  We have highlighted some VAT considerations for hot and cold takeaway foods that could apply to you:

Hot takeaway food will continue to be subject to VAT at 20% (standard-rated).

Typical examples of food and drinks that are standard-rated if sold hot are:

• Chips sold on their own or as part of a meal
• Chinese, Indian and similar take-away meals and dishes
• Baked potatoes with a hot or cold filling
• Pizzas
• Toasted sandwiches
• Cups of tea, coffee, chocolate etc
• Cups of soup

However some cold takeaway items can be zero rated for VAT purposes, examples include:

• Sandwiches
• Bread
• Biscuits (biscuits wholly or partly covered in chocolate are standard rated)
• Cakes
• Pasties
• Chilled or frozen ready meals designed to be cooked at home

There are some food items that are standard rated regardless of how they are sold they include

• Crisps
• Ice cream
• Chocolate
• Sweets
• Fizzy drinks

For further information or advice on how the rules on hot and cold takeaway food effect your business please contact us.