Vat at Restaurants
Discussion
All restaurants have to charge VAT at the Standard Rate - cuurently 15%.
Takeaways have to charge Standard Rate on "Hot Prepared Food".
Basic foodstuffs are Zero Rated in shops - but there are lots of "foods" which are not classed as basic and are therefore Standard Rated. Most confectioneries is charged at Standard Rate. Potato based snacks are Standard Rated but Wheat and Maize based snacks are Zero Rated.
VAT becomes more and more of a minefield the more you look into it.
Takeaways have to charge Standard Rate on "Hot Prepared Food".
Basic foodstuffs are Zero Rated in shops - but there are lots of "foods" which are not classed as basic and are therefore Standard Rated. Most confectioneries is charged at Standard Rate. Potato based snacks are Standard Rated but Wheat and Maize based snacks are Zero Rated.
VAT becomes more and more of a minefield the more you look into it.
If it's a sit down restaurant - it should still be Standard Rated.
If it's a takeaway, it MIGHT be Zero Rated, being cold rather thsn hot prepared food.
The VAT regulations define "hot" as 15 degrees above ambient air temperature. That means, if VAT rules operated in Antartica, food served at Minus 35 degrees Centigrade would be classified as "Hot Prepared Food".
If it's a takeaway, it MIGHT be Zero Rated, being cold rather thsn hot prepared food.
The VAT regulations define "hot" as 15 degrees above ambient air temperature. That means, if VAT rules operated in Antartica, food served at Minus 35 degrees Centigrade would be classified as "Hot Prepared Food".
Eric Mc said:
If it's a sit down restaurant - it should still be Standard Rated.
If it's a takeaway, it MIGHT be Zero Rated, being cold rather thsn hot prepared food.
The VAT regulations define "hot" as 15 degrees above ambient air temperature. That means, if VAT rules operated in Antartica, food served at Minus 35 degrees Centigrade would be classified as "Hot Prepared Food".
Blimey. If it's a takeaway, it MIGHT be Zero Rated, being cold rather thsn hot prepared food.
The VAT regulations define "hot" as 15 degrees above ambient air temperature. That means, if VAT rules operated in Antartica, food served at Minus 35 degrees Centigrade would be classified as "Hot Prepared Food".
Eric Mc said:
Basic foodstuffs are Zero Rated in shops - but there are lots of "foods" which are not classed as basic and are therefore Standard Rated. Most confectioneries is charged at Standard Rate. Potato based snacks are Standard Rated but Wheat and Maize based snacks are Zero Rated.
VAT becomes more and more of a minefield the more you look into it.
A good example is biscuits are basic, but if you put chocolate on they become a luxury. Also i think there was a well known case of whether a Jaffa Cake is a cake or a biscuit!VAT becomes more and more of a minefield the more you look into it.
? too.
I don't see why they can claim that.
In any case, if they provide you with a normal till receipt, which will show their VAT number, I would go ahead and reclaim the Input VAT that should be contained within the price. If they are misdeclaring the VAT in their VAT returns, that is a matter for HM Revenue and Customs and them to sort out.
I don't see why they can claim that.
In any case, if they provide you with a normal till receipt, which will show their VAT number, I would go ahead and reclaim the Input VAT that should be contained within the price. If they are misdeclaring the VAT in their VAT returns, that is a matter for HM Revenue and Customs and them to sort out.
Glassman said:
Doesn't mean a great deal, but I have breakfast every Wednesday at Loch Fyne. The organisation (a business referral organisation) pay the restaurant and the members pay them.
They insist there is no VAT on my Smoked Haddock and Poached Eggs breakfast (+ coffee)
?
Maybe the breakfast club isn't VAT registered? You pay them for the provision of a breakfast club; the VAT relationship is between them and the retaurant.They insist there is no VAT on my Smoked Haddock and Poached Eggs breakfast (+ coffee)
?
If that is the case, have they not heard of the term "disaggregation". The VAT people are very much aware of the "trick" that some businesses sometimes use of splitting their business activities in an attaemept to keep at least one element of their trading out of VAT.
It's a definite "no no" and one HMRC are well aware of - especially in the pub and catering trades.
It's a definite "no no" and one HMRC are well aware of - especially in the pub and catering trades.
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