Talk to the Taxperts

01382 312100

Are You Aware Of The VAT Treatment On Certain Takeaway Items?

With many restaurants and cafes opening as takeaway only due to the impact of coronavirus, we wanted to highlight the different VAT rules that can apply to certain items.

All hot or cooked takeaway food and most drinks will continue to be subject to VAT at 20% but there are some cold items that can be zero rated for VAT.

When sold to takeaway, products such as sandwiches and cakes are zero rated and other food items such as pastries can be zero rated while they are still warm, as long as they are not kept warm after they have been cooked or advertised as “hot food”.

There will be some food and drink products that will always be standard rated regardless of how they are sold, including crisps, ice cream, chocolate, sweets and most drinks.

To be able to benefit from the zero rating for cold takeaway items, you will need to be able to clearly identify those sales from other products. You can do this through your till or EPOS systems to define which items qualify.

For further information or advice on how these rules affect you, please get in touch with our VAT Taxperts via [email protected] or contact one of our offices.

Alternatively, if you would like support with your food and drink business please contact our EQ Food & Drink specialists via food&[email protected].

Latest News

View all latest news

August 31, 2023

Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates (AFRs) published by HMRC take effect from 1 September 2023. The AFRs for journeys undertaken from 1 September are: After being…

August 16, 2023

Maximising Tax Benefits For Leisure Sector Businesses

Running a business in the leisure sector is all about bringing joy and relaxation to your customers. However, when it comes to tax, it’s essential to ensure your…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise