Most food is VAT-free but you do pay VAT on some food. Some items for human consumption are standard-rated. This includes catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.
Is there VAT on food in supermarkets?
You are required to charge VAT at the standard rate for food and drink supplied for consumption on the premises in which it is supplied (i.e. retail outlet, restaurant, cafe, supermarket, or in a paid-entry venue).
What is the VAT on food?
VAT on food and non-alcoholic drinks: 5% rate
A 5% rate of VAT applies to supplies of: Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs. Hot takeaway food and hot takeaway non-alcoholic beverages.
How much is VAT on food in UK?
If you supply food and non-alcoholic beverages for consumption on your premises, for example, a restaurant, café or pub, you’re currently required to charge VAT at the standard rate of 20%.
What foods are VAT exempt?
You can zero rate all supplies of unprocessed foodstuffs such as:
- raw meat and fish.
- vegetables and fruit.
- cereals, nuts and pulses.
- culinary herbs.
Does takeaway food have VAT?
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).
How is VAT calculated on food?
Working Out VAT
- Multiply the price/figure by 1. + VAT Percentage.
- For example, the UK VAT rate is 20%, which means you would do price/figure X 1.2.
- For example, £100 is the price X 1.2 = £120 which is now the price/figure including VAT.
What percentage is VAT?
The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT , such as postage stamps, financial and property transactions. The VAT rate businesses charge depends on their goods and services. Check the rates of VAT on different goods and services.
What items are 5% VAT?
The reduced 5% VAT rate applies in the following areas:
- Food and non-alcoholic drinks which are sold to eat on the premises of places such as restaurants, cafés and pubs, as well as hot takeaway food and non-alcoholic drinks.
- Holiday sleeping accommodation, including hotels and pitch fees for caravans and tents.
Do eggs have VAT?
Fish eggs from fish generally used in the UK for human consumption, whether supplied as roe or as eggs for breeding, is zero-rated. Eggs from standard-rated fish remain standard-rated. Fish used as bait may be zero-rated only if it is fit for human consumption at the time of supply.
Is Rice VAT exempt?
There are many exemptions, including sales or importations of agricultural goods such as livestock for breeding, rice and corn grits, seeds and fertilizers, hospital services but not those of professionals, educational services, sales of books and newspapers, bank services, and fuel imports.
What is VAT paid on?
The standard rate of VAT in the UK is currently 20% and this is the rate charged on most purchases. However, there are other VAT rates which you need to be aware of as a business. Reduced rate VAT is charged on sanitary products, energy saving measures and children’s car seats and is charged at 5%.