Subway - Tax on hot sandwiches???
Discussion
Just been to subway for my lunch, the sub of the day was usually £1.99 for 6 inch. Walked in there today and its now £2.19. Its 20p, I didnt think much of it, but asked the guy as a bit of general conversation why the price increase. Was expecting the 'price of fuel' point, but he goes on to say there is a tax on hot sandwiches and eating in, so the price has increased.
Firstly, I dont believe him in the slightest, and found it rather funny. But just to satisfy my mind, is this true? I wouldnt be surprised if there was a tax on it. Fair play to the guy though, if there isnt a tax and made it up, he'd probably be able to convince a few people out there
Firstly, I dont believe him in the slightest, and found it rather funny. But just to satisfy my mind, is this true? I wouldnt be surprised if there was a tax on it. Fair play to the guy though, if there isnt a tax and made it up, he'd probably be able to convince a few people out there
Engineer1 said:
Conian said:
Say you want to take it away.
Then sit at a table eating the evidence before the tax man gets you
The price remains the same the money goes into proift not VAT or it pays for the delivery costs on takeaway.Then sit at a table eating the evidence before the tax man gets you
rich1231 said:
308mate said:
Eric Mc said:
VAT is charged on "hot prepared food". Has always been the case.
Which means he got off lightly?1.99 + 17.5% = 2.33
Get a receipt and claim it.
HRC website said:
Rates of VAT
Different VAT rates apply to different goods and services. Currently there are three rates:
standard rate - 17.5 per cent
reduced rate - 5 per cent
zero rate - 0 per cent
The standard rate of VAT is the default rate for goods and services unless specified otherwise.
[b]Examples of reduced rate items include:
domestic fuel and power
installation of energy-saving materials
residential conversions
women's sanitary products
children's car seats [/b]
Examples of zero-rated items include:
food - but not meals in restaurants or hot takeaways
books and newspapers
children's clothing and shoes
public transport
It seems reduced rate applies only to "essentials". Different VAT rates apply to different goods and services. Currently there are three rates:
standard rate - 17.5 per cent
reduced rate - 5 per cent
zero rate - 0 per cent
The standard rate of VAT is the default rate for goods and services unless specified otherwise.
[b]Examples of reduced rate items include:
domestic fuel and power
installation of energy-saving materials
residential conversions
women's sanitary products
children's car seats [/b]
Examples of zero-rated items include:
food - but not meals in restaurants or hot takeaways
books and newspapers
children's clothing and shoes
public transport
The VAT rules on take-aways have had to be clarified a number of times since VAT was introduced in 1973. Essentially, the supply of food related services - such as take-aways, reastaurants, pubs etc are all Standard Rated for VAT purposes.
An interesing permutation on this was the "Ginster Phenomenon" of a few years ago.
You may have noticed that at one time, if you were foolish enough to buy a Ginster's sausage roll or pastie in a garage shop, the item was sold to you cold and, if you wanted it hot, you had to take it to a microwave oven on the customer side of the counter. This little trick meant that the shop was selling the food cold and could claim it was Zero Rated for VAT purposes. If the oven was behind the counter, it would have been hot and subject to 17.5% VAT.
I think thae VAT man got wise to that.
An interesing permutation on this was the "Ginster Phenomenon" of a few years ago.
You may have noticed that at one time, if you were foolish enough to buy a Ginster's sausage roll or pastie in a garage shop, the item was sold to you cold and, if you wanted it hot, you had to take it to a microwave oven on the customer side of the counter. This little trick meant that the shop was selling the food cold and could claim it was Zero Rated for VAT purposes. If the oven was behind the counter, it would have been hot and subject to 17.5% VAT.
I think thae VAT man got wise to that.
Eric Mc said:
You may have noticed that at one time, if you were foolish enough to buy a Ginster's sausage roll or pastie in a garage shop, the item was sold to you cold and, if you wanted it hot, you had to take it to a microwave oven on the customer side of the counter. This little trick meant that the shop was selling the food cold and could claim it was Zero Rated for VAT purposes. If the oven was behind the counter, it would have been hot and subject to 17.5% VAT.
I think thae VAT man got wise to that.
Mmmm, crafty.I think thae VAT man got wise to that.
They will soon be promoting the idea of leaving your sausage roll on top of your engine for 3 minutes.
3sixty said:
Just been to subway for my lunch, the sub of the day was usually £1.99 for 6 inch.
I think the bigger question here that everyone seems to be avoiding is why on earth did you only half a 6 inch you big pansy? Surely it can't even be considered lunch unless you go for a full footlong!! 
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