Commentary

701/14/20 Food products

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

701/14/20 Food products

Part V8 HMRC Notices | Commentary

701/14/20
Food products

December 2020

1 Overview

1.1 This notice

This notice explains when food can be zero rated. It's been updated from the 2014 version to include references to the temporary 5% reduced rate of VAT that will apply to supplies of food (excluding alcoholic drinks) for consumption on the premises on which it is supplied and to supplies of hot takeaway food (excluding alcoholic drinks) between 15 July 2020 and 31 March 2021.

You should refer to 'Catering, takeaway food' (VAT Notice 709/1) for further information.

All references in this notice to “temporarily reduced rate” or “temporary reduced rate” are to supplies made between 15 July 2020 and 31 March 2021 that temporarily benefit from the reduced rate.

Main narrative treatment—V4.217–V4.225.

1.2 Who should read this notice

You should read this notice if you're a food:

  1.  

    •     producer;

  2.  

    •     manufacturer;

  3.  

    •     wholesaler;

  4.  

    •     retailer.

1.3 Law

VATA 1994, of which:

  1.  

    •     section 30 states that supplies of goods and services specified in VATA 1994 Sch 8 are zero-rated; and

  2.  

    •     Sch 8 Group 1 specifies when food of a kind used for human consumption is zero-rated.

2 General VAT liability rules

2.1 Food supplied in the course of catering

You must always standard rate food supplied in the course of catering (subject to the rules on the temporary 5% reduced rate of VAT that will apply between 15 July 2020 and 31 March 2021) including hot take-away food.

Further information can be found in VAT Notice 709/1 'Catering and take-away food'.

Main narrative treatment—V4.220.

2.2 Food not supplied in the course of catering

Most food of

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