Most food is zero-rated for VAT, so you don't pay VAT, but some items are standard-rated (20% VAT). This includes catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.
Most food and drink sold as supermarket basic foodstuffs and groceries for home preparation or consumption is zero-rated for VAT but a distinction is made for items regarded as snack-treats or luxuries.
In the UK most food items you'd buy from the shops or supermarket for human consumption are zero rate VAT. But meals you'd eat in a restaurant or takeaways are standard rate VAT. Specific snacks like crisps, ice cream and soft drinks are standard rate, meanwhile, milk is zero-rated.
Here are some examples of food items that are currently zero-rated for VAT in the UK: Bread and bakery products. Fresh fruit and vegetables. Meat, fish, and poultry (uncooked or in the process of being cooked)
The price of menu items available for McDelivery also differs to the price of menu items available in McDonald's restaurants. All prices include VAT at the current UK rate.
If you run a takeaway, then you must charge VAT on all hot food and home deliveries. However, you do not need to charge VAT on cold takeaway food, unless it is consumed in a designated customer area. The VAT charges for hot food include: Food that has been heated for consumption.
We have to charge VAT if you wish to 'eat in' which we then pass over to HMRC. We also charge a little extra in our café shops as we provide additional services.
Food and drink for human consumption is usually zero-rated but some items are always standard-rated. These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.
Value Added Tax is currently charged by HM Treasury on the sale of toilet rolls at the rate of 20%. I believe that this should be abolished as they are not "non-essential, luxury items" and are an essential item as are female hygeine products which are rated at 5%.
Under UK law, VAT on cakes and biscuits is set at 0%. However, crucially, the law states that if a biscuit is partly or wholly covered in chocolate then it is to be taxed at the standard rate.
VAT is also charged on other items of "sweetened and prepared food which is normally eaten with the fingers." For example: Chocolate bars. Diabetic chocolate. Liqueur chocolates.
VAT on bakery items as cakes or biscuits. Even though most traditional bakery products, such as biscuits, bread, and cakes, are zero-rated i.e. no VAT is charged, some confectionery items are standard-rated comprising: Biscuits completely or partially covered in chocolate (or a similar product in appearance and taste.
All hot takeway food and most drinks continue to be subject to VAT at 20%, but some cold takeaway food can be zero-rated for VAT. This includes sandwiches and cake, and also pasties and other cooked pastry products as long as they aren't advertised as being hot and are not kept warm after they have been cooked.
Like we said, all food which is consumed where it is served, whether it be cooked, uncooked, hot or cold, is subject to standard rate VAT charges. All food which is taken away is subject to zero-rate VAT charges, unless, it is cooked and served immediately.
Cold takeaway food and drink is zero-rated, as long as it's not of a type that's always standard-rated (such as potato crisps, sweets and some beverages including bottled water). Hot takeaway drinks are standard-rated (or temporarily reduced rated as long as they are non-alcoholic).
Food for human consumption is usually zero-rated for VAT rather than exempt from VAT. This means the same thing for the consumer, they won't be charged VAT, hurray!
Most soft drinks (excluding milk) are subject to standard-rated VAT. Surprisingly, yes! Bottled water is subject to VAT as it's not considered a basic necessity since tap water is available. Milk is generally not subject to VAT and is zero-rated for VAT purposes.
Coffee purchased, as a hot drink, from a café, restaurant or similar establishment, is subject to VAT at the standard rate of 20%. Whether the coffee is consumed on the premises or taken away does not affect the VAT treatment. In the same way, VAT is charged on hot coffee purchased from takeaways/street vendors.
Whether the coffee is consumed on the premises or taken away does not affect the VAT treatment. In the same way, VAT is charged on hot coffee purchased from takeaways/street vendors.
Most soft drinks (excluding milk) are subject to standard-rated VAT. Surprisingly, yes! Bottled water is subject to VAT as it's not considered a basic necessity since tap water is available. Milk is generally not subject to VAT and is zero-rated for VAT purposes.
