VAT on school staff meals
Discussion
I suspect this one is aimed at Eric(?) but open to anyone who can help clarify for me!
Basically I need to know if VAT is due on cold meals produced in a school (by the school not a 3rd party) for the staff. These are not take-away food, they are consumed on the premises, ie. a plated salad with cold meat, cheese, fish or a baguette with salad etc
Secondly, if I am correct in thinking that VAT would not be due on cold takeaway food packaged for consumption off of the premises.
Any help appreciated.
Basically I need to know if VAT is due on cold meals produced in a school (by the school not a 3rd party) for the staff. These are not take-away food, they are consumed on the premises, ie. a plated salad with cold meat, cheese, fish or a baguette with salad etc
Secondly, if I am correct in thinking that VAT would not be due on cold takeaway food packaged for consumption off of the premises.
Any help appreciated.
Is section 2.6 here relevant?
Especially the last but one paragraph
https://www.gov.uk/government/publications/vat-not...
2.6 Schools, universities, colleges, etc
Certain supplies of education, training and research are exempt from VAT. Where an educational institution provides exempt education to its own pupils and students, then the supply of catering they make is also exempt. If the supply of education is non-business, as in the case of a local authority school, free school or academy school, the supply of catering will also be non-business, provided it is made at, or below, cost. See Notice 701/30 Education and vocational training for more information.
Whichever treatment is appropriate it applies to anything provided by way of catering. This includes food supplied at mealtimes and break times from the refectory, canteen or other similar outlet but not items purchased from a university campus shop, as they are not provided by way of catering.
Food and drink supplied at or below cost from a tuck shop run by the school itself takes on the same liability as the education.
You cannot normally deduct input tax incurred on costs that relate to exempt supplies. Further information can be found in Notice 706 Partial Exemption.
You must account for VAT on supplies of catering to staff and visitors (except visiting students).
If you are a student union, supplying catering both on behalf, and with the agreement, of the parent institution, you will need to read section 5.5.
Especially the last but one paragraph
https://www.gov.uk/government/publications/vat-not...
2.6 Schools, universities, colleges, etc
Certain supplies of education, training and research are exempt from VAT. Where an educational institution provides exempt education to its own pupils and students, then the supply of catering they make is also exempt. If the supply of education is non-business, as in the case of a local authority school, free school or academy school, the supply of catering will also be non-business, provided it is made at, or below, cost. See Notice 701/30 Education and vocational training for more information.
Whichever treatment is appropriate it applies to anything provided by way of catering. This includes food supplied at mealtimes and break times from the refectory, canteen or other similar outlet but not items purchased from a university campus shop, as they are not provided by way of catering.
Food and drink supplied at or below cost from a tuck shop run by the school itself takes on the same liability as the education.
You cannot normally deduct input tax incurred on costs that relate to exempt supplies. Further information can be found in Notice 706 Partial Exemption.
You must account for VAT on supplies of catering to staff and visitors (except visiting students).
If you are a student union, supplying catering both on behalf, and with the agreement, of the parent institution, you will need to read section 5.5.
the 709/1 is what I have been looking at...
2.1 What is the ordinary meaning of catering?
Catering in its ordinary meaning includes the supply of prepared food and drink. It is characterised by a supply involving a significant element of service. Obvious examples of supplies in the course of catering include:
supplies made in restaurants, cafes, canteens and similar establishments (except supplies of cold take-away food)
Basically the school is adamant that VAT is only due on "hot food" bought by staff. To my mind they are taking a very simplistic view.
We have hot food supplied and consumed on site and we have cold food which consists of precooked or prepared ingredients, again consumed on site.
Does the "schools" bit supersede the above?
2.1 What is the ordinary meaning of catering?
Catering in its ordinary meaning includes the supply of prepared food and drink. It is characterised by a supply involving a significant element of service. Obvious examples of supplies in the course of catering include:
supplies made in restaurants, cafes, canteens and similar establishments (except supplies of cold take-away food)
Basically the school is adamant that VAT is only due on "hot food" bought by staff. To my mind they are taking a very simplistic view.
We have hot food supplied and consumed on site and we have cold food which consists of precooked or prepared ingredients, again consumed on site.
Does the "schools" bit supersede the above?
Right - so they do charge VAT on some of the services they provide.
The provision of educational services is an extremely complex area when it comes to VAT.
The basic rule is that the education of children by state funded schools i.e. those up to the A level, is Outside the Scope for VAT purposes. If there are ancilliary services provided to pupils and staff (such as a staff or pupil canteen) with NO PROFIT MOTIVE, then that service is also Outside the Scope.
If these services are provided with profit and/or to outside entities (such as the general public or non-pupils), then the service would be Standard Rated or Zero Rated (depending on the nature of the service) for VAT.
It is all covered in this VAT Notice -
https://www.gov.uk/government/publications/vat-not...
The provision of educational services is an extremely complex area when it comes to VAT.
The basic rule is that the education of children by state funded schools i.e. those up to the A level, is Outside the Scope for VAT purposes. If there are ancilliary services provided to pupils and staff (such as a staff or pupil canteen) with NO PROFIT MOTIVE, then that service is also Outside the Scope.
If these services are provided with profit and/or to outside entities (such as the general public or non-pupils), then the service would be Standard Rated or Zero Rated (depending on the nature of the service) for VAT.
It is all covered in this VAT Notice -
https://www.gov.uk/government/publications/vat-not...
Gassing Station | Business | Top of Page | What's New | My Stuff